Dividends on preferred shares
At December 31, 2020, Russia Inc. has outstanding the following shares:
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.
No dividends have been paid since December 31, 2017. The corporation now desires to distribute $ 120,000 in dividends.
Instructions
Calculate how much the preferred and common shareholders will receive if the preferred shares are cumulative and fully participating.

Question

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The Answer of Dividends on preferred shares
At December 31, 2020, Russia Inc. has outstanding the following shares:
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.
No dividends have been paid since December 31, 2017. The corporation now desires to distribute $ 120,000 in dividends.
Instructions
Calculate how much the preferred and common shareholders will receive if the preferred shares are cumulative and fully participating.

Dividends on Preferred Shares