Reference no: EM132005250
Question - Ben Corp. has been authorized to issue 20,000 no par value, $6, cumulative and fully participating preferred shares and 100,000 no par value common shares. The account balances at December 31, 2014 are:
$6 Preferred shares, 4,000 shares outstanding - $ 400,000
Common shares, 60,000 shares outstanding - 1,600,000
No dividends have been paid since December 31, 2010. The corporation now desires to pay $280,000 in dividends.
Instructions - Calculate how much the preferred and common shareholders will receive.
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