Busy Beavers Inc. reported retained earnings of $ 463,600 at June 30, 2022, its most recent year end. On July 1, 2021, the opening retained earnings had been $ 475,000. During the year ended June 30, 2022, Busy Beavers declared stock dividends on common shares and cash dividends on preferred shares. The stock dividends resulted in a reduction of retained earnings of $ 200,000. Profit for the year was $ 225,000 and total comprehensive income was $ 248,500.
Instructions
Calculate the amount of cash dividends on the preferred shares.

Question

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The Answer of Busy Beavers Inc. reported retained earnings of $ 463,600 at June 30, 2022, its most recent year end. On July 1, 2021, the opening retained earnings had been $ 475,000. During the year ended June 30, 2022, Busy Beavers declared stock dividends on common shares and cash dividends on preferred shares. The stock dividends resulted in a reduction of retained earnings of $ 200,000. Profit for the year was $ 225,000 and total comprehensive income was $ 248,500.
Instructions
Calculate the amount of cash dividends on the preferred shares.