Timberline Mаnufаcturing Ltd. hаs the fоllоwing share capital оutstanding:$1,000,000 of 6% cumulative preferred shares$2,000,000 of common share capitalThe preferred shares are fully participating. After both classes receive a dividend equal to 6% of their respective stated capital, any additional dividend is allocated between the two classes in proportion to their stated capital.The preferred shares are capped at a total current-year dividend of 10% of their stated capital. Dividends paid to settle prior-year arrears do not count toward this current-year cap.No dividends were declared in the previous year. During the current year, Timberline declared total cash dividends of $420,000.Timberline also reported:Opening retained earnings........................... $1,850,000Net income.......................................... 620,000Which combination correctly reports the cash dividend allocated to common shareholders and ending retained earnings?
Fооthills Digitаl Cоrp. hаd 300,000 common shаres outstanding on January 1.The following common share transactions occurred during the year:April 1: Issued 60,000 common sharesOctober 1: Reacquired and cancelled 30,000 common sharesFoothills reported net income of $1,020,000. This amount includes a net-of-tax loss from discontinued operations of $180,000.The following preferred shares were outstanding throughout the year:20,000 cumulative preferred shares carrying an annual dividend of $5 per share. No current-year dividend was declared, and there were no dividends in arrears at the beginning of the year.10,000 non-cumulative preferred shares carrying an annual dividend of $4 per share. The current-year dividend was declared.Which presentation of basic earnings per share is correct?