Peppermint Inc. has the following shares outstanding at December 31, 2020:
Common shares, $1,500,000 no par value, 10,000 shares issued and outstanding, unlimited number authorized.
Preferred shares, $200,000, $5.00, no par value, non-voting shares, and 2,000 shares issued and outstanding.
Assume the following situations are independent:
a) The preferred shares are non-cumulative and non-participating.
Dividends declared are $47,500.
b) The preferred shares are cumulative and non-participating.
Dividends have not been declared for the past two years.
Dividends declared are $30,000.
Instructions
Determine the amount of the dividend that would be paid to each class of shares under each situation.

Question

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The Answer of Peppermint Inc. has the following shares outstanding at December 31, 2020:
Common shares, $1,500,000 no par value, 10,000 shares issued and outstanding, unlimited number authorized.
Preferred shares, $200,000, $5.00, no par value, non-voting shares, and 2,000 shares issued and outstanding.
Assume the following situations are independent:
a) The preferred shares are non-cumulative and non-participating.
Dividends declared are $47,500.
b) The preferred shares are cumulative and non-participating.
Dividends have not been declared for the past two years.
Dividends declared are $30,000.
Instructions
Determine the amount of the dividend that would be paid to each class of shares under each situation.