KBR Investments Inc. has issued 90,000 Class A $3 cumulative preferred shares and 45,000 Class B $5 non-cumulative preferred shares. At the end of 2012, there were no dividends in arrears. During 2013, KBR paid dividends of $100,000 to its Class A shareholders. In January of 2014, KBR paid dividends of $120,000 to its Class A shareholders. On December 31, 2014, KBR declared dividends in an amount sufficient to pay out all of the remaining dividends in arrears plus the entire current year obligation including dividends on Class B shares, so that they can pay dividends on common shares.
Instructions
Calculate the dividends declared for Class A and for Class B shareholders on December 31, 2014.

Question

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The Answer of KBR Investments Inc. has issued 90,000 Class A $3 cumulative preferred shares and 45,000 Class B $5 non-cumulative preferred shares. At the end of 2012, there were no dividends in arrears. During 2013, KBR paid dividends of $100,000 to its Class A shareholders. In January of 2014, KBR paid dividends of $120,000 to its Class A shareholders. On December 31, 2014, KBR declared dividends in an amount sufficient to pay out all of the remaining dividends in arrears plus the entire current year obligation including dividends on Class B shares, so that they can pay dividends on common shares.
Instructions
Calculate the dividends declared for Class A and for Class B shareholders on December 31, 2014.