Beauce Incorporated had 45,000, $2.50 preferred shares issued. It did not pay a dividend to the preferred

Question:

Beauce Incorporated had 45,000, $2.50 preferred shares issued. It did not pay a to the preferred shareholders in 2013 and 2014.
(a) What are the dividends in arrears, if any, at December 31, 2014, if the shares are cumulative and if they are noncumulative?
(b) How are dividends in arrears reported in the financial statements?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...