Reference no: EM132571671

Question - Timmins Corp. has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares. Dividends have been paid every year except last year and the current year. The carrying value of the preferred shares is $200,000 and of the common shares is $300,000.

1. If the preferred shares are cumulative and non-participating and $100,000 is distributed as a dividend, the common shareholders will receive

a. $0.

b. $68,000.

c. $84,000.

d. $100,000.

2. If the preferred shares are non-cumulative and fully participating and $70,000 is distributed as a dividend, the common shareholders will receive

a. $0.

b. $42,000.

c. $46,000.

d. $54,000.

3. If the preferred shares are cumulative and fully participating and $101,000 is distributed as a dividend, the common shareholders will receive

a. $0.

b. $51,000.

c. $61,000.

d. $69,000.