SOLVED

26) For stock splits and stock dividends, while it is possible to state the number of shares as beginning-of-year equivalents, it makes more sense to use end-of-year equivalents because financial statement readers are evaluating EPS after the end of the year. Explain why the adjustment for stock splits and stock dividends is standardized. 27) For the year ended December 31, 2016, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2015 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2016. Dividends on the cumulative preferred shares were not declared in 2015. On December 15, 2016, Harvest declared and paid $24,000 in dividends on the 3% cumulative shares including the arrears. Harvest also declared and paid the $10,000 dividends on the non-cumulative shares. Â Required: Determine the net income available to ordinary shareholders for the year ended December 31, 2016. 28) For the year ended December 31, 2018, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2017 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2018. Dividends on the cumulative preferred shares were not declared in 2017. Harvest did not declare any dividends during 2018. Â Required: Determine the net income available to ordinary shareholders for the year ended December 31, 2018. 29) For the year ended December 31, 2018, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2017 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2018. Dividends on the cumulative preferred shares were not declared in 2017. On December 15, 2018, Harvest declared $10,000 in dividends on the non-cumulative preferred shares, payable on January 15, 2019. Dividends on the cumulative preferred shares are neither declared nor paid. Â Required: Determine the net income available to ordinary shareholders for the year ended December 31, 2018.