Calculate how much the preferred shareholders will receive

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At December 31, 2017, Russia Inc. has outstanding the following shares:

  1. 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.
  2. No dividends have been paid since December 31, 2014. The corporation now desires to distribute $120,000 in dividends.

Question 1: Calculate how much the preferred and common shareholders will receive if the preferred shares are cumulative and fully participating.

Reference no: EM132490563

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