Reference no: EM132588409

On 30 April 2020, Chocolate Ltd went into liquidation. At that date, the equity of Chocolate Ltd comprised the following:

450 000 preference shares issued for $1 and paid to 60c     $270,000

800 000 ordinary shares issued for $1 and paid to 80c         $640,000

                                                                                       $910,000

After realising the assets and paying all the creditors, the liquidator had $410,000 cash available to distribute to shareholders.

Required

Question 1: Calculate the distribution of cash to each class of shareholders assuming all rank equally on return of capital.