Nevada Steamships Inc. reported retained earnings of $463,600 at June 30, 2015, its most recent year end. On July 1, 2014, the opening retained earnings had been $475,000. During the year, ended June 30, 2015, Nevada 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 Nevada Steamships Inc. reported retained earnings of $463,600 at June 30, 2015, its most recent year end. On July 1, 2014, the opening retained earnings had been $475,000. During the year, ended June 30, 2015, Nevada 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.