Reference no: EM132553793

Alberta coro.. has been authorized to issue 20,000 no par value, $ 6, cumulative and fully participating preferred shares and 100,000 no par value common shares. The account balances at December 31, 2020 are:

$7 Preferred shares, 4,000 shares outstanding................................ $ 400,000

Common shares, 60,000 shares outstanding................................... 1,600,000

No dividends have been paid since December 31, 2017. At the end of 2020, the corporation desires to pay a total amount of $280,000 in dividends.

Instructions

Question a) Calculate preferred share dividend in arrear and for current year

Question b) Calculate the ratable dividend for common shares

Question c) Calculate the fully participating preferred share dividend

Question d) Calculate the reminding dividend for the common shares