E. MacGill Inc. paid out cash dividends at the end of each year as follows:
Year                            Dividends
2018 .......................    $525,000
2019 .......................    $600,000
2020 .......................    $750,000

Required

a. Assume that MacGill had issued 100,000 common shares and 25,000, 10%, non-cumulative preferred shares with a share capital of $1.5 million. How much cash would be paid out in 2018, 2019, and 2020 as dividends to each class of shares?

b. Assume that MacGill had issued 50,000 common shares with share capital of $5.5 million, and 20,000, 7% cumulative, preferred shares that were two years in arrears as at January 1, 2018, with a share capital of $2.5 million. How much cash would be paid out in 2018, 2019, and 2020 as dividends to each class of shares?