Reference no: EM133072797
Question - On December 31, 2020, the shareholders' equity of Finland Corporation shows the following:
Preferred shares-$ 6, no par, 8,000 shares outstanding $400,000
Common shares-no par, 60,000 shares outstanding 800,000
Retained earnings 240,000
Total shareholders' equity $1,440,000
Assume that preferred dividends were last paid on December 31, 2018, and that all of the company's retained earnings are to be paid out in dividends on December 31, 2020.
Required - If the preferred shares are cumulative and fully participating, calculate:
1. Calculate the amount of dividend distributed to the preferred shareholders, and
2. Calculate the amount of dividend distributed to the common shareholders.
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