Problem $10(10$ marks$)$

Togo Inc. has the following shares outstanding:

$40,000,$$$0\mathrm{.}80,$ no par value preferred shares

$$400,00060,000$ no par value common shares

$$600,000$

All shares were sold for $$10$ each.

No dividends have been declared since December $31,2020.$ It is now December $31,2023,$ and the board of directors wants to distribute $$204,000$ in dividends.

Required:

Calculate how much the preferred and common shareholders will receive under each of the following assumptions:

a$)$ The preferred is noncumulative and non$-$participating.

b$)$ The preferred is cumulative and non$-$participating.

c$)$ The preferred is cumulative and fully participating.