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The issued share capital of Maelstrom Co is as follows:
Ordinary shares of 10c each
$1,000,000
8% Preferred shares of 50c each (redeemable)
$500,000
In the year ended 31 October 20X2, the company has paid the preferred dividend for the year and an
interim dividend of 2c per share on the ordinary shares. A final ordinary dividend of 3c per share is
declared on 30 October 20X2.
What is the total amount of dividends recognised in the financial statements relating to the year
ended
31 October 20X2?
A
$580,000
B
$90,000
C
$130,000My answer is A 580,000
book answer is C 130,000Which book did you find this question in? I am guessing that it is the BPP Revision Kit and if so, which edition are you using?
The correct answer is $540,000 (( 5c x 10,000,000) + (8% x $500,000))
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