Question: Stangers Secure Storage Inc.s capital structure includes the following equity instruments: No par value common shares, 1,000,000 shares issued and outstanding Class A,

Stanger’s Secure Storage Inc.’s capital structure includes the following equity instruments:
■ No par value common shares, 1,000,000 shares issued and outstanding
■ Class A, $100 par value, 4% cumulative preferred shares, 100,000 shares issued and outstanding
■ Class B, $100 par value, 6% non-cumulative preferred shares, 50,000 shares issued and outstanding

The dividends on the Class B shares are subordinated to the Class A shares; dividends must be up to date on the Class A shares before dividends can be declared on Class B shares. In 2021,
Stanger’s declared $1,300,000 in dividends.
■ Scenario 1—there are no dividends in arrears.
■ Scenario 2—dividends were neither declared nor paid in 2020.
■ Scenario 3—dividends were neither declared nor paid in 2019 or 2020.


Required:
Determine how much of the dividend must be distributed to each class of shares for each of the three scenarios.

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