At December 31, 2020, Russia Inc. has outstanding the following shares:

           5,000, $ 3.20, no par value preferred shares with a carrying value of $ 200,000, and 40,000 no par value common shares with a carrying value of $ 600,000.

No dividends have been paid since December 31, 2017. The corporation now desires to distribute $ 120,000 in dividends.

Instructions

Calculate how much the preferred and common shareholders will receive if the preferred shares are cumulative and fully participating.

Answer rating: 100% (QA)

Preferred Dividend 64000 Common Dividend 56000 Stepbystep expl... View the full answer