The December 31, 2020, equity section of ZoomZoom Inc.’s balance sheet appears below.

                                                        ZoomZoom Inc.
                                       Equity Section of the Balance Sheet
                                                        December 31, 2020
Contributed capital:
Preferred shares, $3.75 cumulative,
40,000 shares authorized and issued ............................................. $1,660,000
Preferred shares, $10 non-cumulative,
8,000 shares authorized and issued..................................................... 670,000
Common shares, 400,000 shares authorized and issued .............. 1,750,000
Total contributed capital .................................................................. $4,080,000
Retained earnings .................................................................................. 741,600
Total equity ........................................................................................ $4,821,600

Required

All the shares were issued on January 1, 2018 (when the corporation began operations). No dividends had been declared during the first two years of operations (2018 and 2019). During 2020, the cash dividends declared and paid totalled $613,300.

1. Calculate the amount of cash dividends paid during 2020 to each of the three classes of shares.

2. Assuming profit earned during 2020 was $1,250,000, determine the December 31, 2019, balance in retained earnings.

3. Prepare a statement of changes in equity for the year ended December 31, 2020.