Use the Following Information to Calculate the "Net Income Available

Use the following information to calculate the "net income available to ordinary shareholders": $\begin{array}{|l|r|}\hline \text { Net income } & 4,000,000 \\\hline \text { Dividends on cumulative preferred shares } & 40,000 \\\hline \text { Dividends on non-cumulative preferred shares } & 100,000 \\\hline \text { Dividends declared in 2013: } & \\\text { - Common shares } & 50,000 \\\text { - Cumulative preferred shares } & 80,000 \\\text { - Non-cumulative preferred shares } & 0 \\\hline \text { Dividends paid in 2013: } & \\\text { - Common shares } &30,000 \\\text { - Cumulative preferred shares } & 50,000 \\\text { - Non-cumulative preferred shares } &0\\\hline\end{array}$

A) $3,860,000
B) $3,870,000
C) $3,950,000
D) $3,960,000

Correct Answer:

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