Problem 12-5A Dividend allocation LO5 eXcel Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2020. $2,880,000 Preferred shares, $4.48 non-cumulative. 45,000 shares authorized and issued Common shares 80,000 shares authorized and issued All shares were issued during 2018 1 280,000 During its first three years of operations, Garda World Security Corporation declared and paid total dividends as shown in the last column of the following schedule. Required Part A Complete the following schedule by filling in the shaded areas. 1. Calculate the total dividends paid in each year to the preferred and to the common shareholders. Preferred Common Total Year Dividend Dividend Dividend $ 150.000 2018 2019 400.000 560,000 2020 $1,120.000 Total for three years Aa de ENE 10:31 AM 2. Calculate the dividends paid per share to both the preferred and the common shares in 2020. CHAPTER 12 Organization and Operation of Corporations Part B Repeat the requirements in Part A assuming the preferred shares are cumulative. Analysis Components Which shares would have a greater market value: cumulative or non-cumulative? Explain