Agler, Inc. has 10,000 shares of 6%, $100 par value, cumulative preference shares and 100,000 ordinary shares with a $1 par value outstanding at December 31, 2014. If the board of directors declares a $50,000 dividend, the

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Cumulative preference shares have a right to receive their dividends before the ordinary shareholders. The dividend amount of $50,000 will be paid to the preference shareholders in full as they have a cumulative preference. The ordinary shareholders will receive any additional dividend after the preference shareholders are paid in full.