What the common shareholders will receive

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Question 1: Instanbul Corp. has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares. Dividends have been paid every year except last year and the current year. The carrying value of the preferred shares is $200,000 and of the common shares is $300,000. If the preferred shares are noncumulative and fully participating and $70,000 is distributed as a dividend, the common shareholders will receive

Option 1: $54,000.

Option 2: $46,000.

Option 3: $0.

Option 4: $42,000.

Reference no: EM132602199

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