Acton Company has two classes of shares that were both issued on January 1, 2019: Class

Question:

Acton Company has two classes of shares that were both issued on January 1, 2019:
■ Class A, $100 par value, 5% preferred shares, 100,000 shares issued and outstanding
■ Class B, no par value common shares issued at $50 per share, 1,000,000 shares issued and outstanding
Due to challenging start-up problems in 2019 and 2020, there were no dividends paid; in 2021, dividends of $6,000,000 were paid. For 2022, dividends paid totalled $17,000,000, and for 2023 total dividends paid were $15,000,000.


Required:
How much was the amount of dividends paid to preferred and common shares in 2019 to 2023? First assume that the preferred shares are non-cumulative, then assume that they are cumulative. Use the following table for your answer.

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