Distribution to different classes of shareholders  LO8 On 1 December 2020, Yang Ltd went into liquidation. At that date, the equity of Yang Ltd comprised the following. 300 000 preference shares fully paid to $1, to be redeemed for $1.10 $ 300 000 200 000 ‘A’ ordinary shares issued for $1 and fully paid 200 000 400 000 ‘B’ ordinary shares issued for $2 and fully paid 800 000 $1 300 000 After realising the assets and paying all creditors, the liquidator had $450 000 cash available to distribute to shareholders. The order of priority provided in the constitution for repayment of capital is: (1) preference and (2) ordinary. Required 1. Prepare a statement of the distribution to shareholders supported by a detailed explanation of the apportionment of any cash among the various classes of shareholders. 2. How will the statement of the cash distribution to shareholders change if the ordinary shares ‘B’ were partly paid to:

(a) 50c

(b) $1.40

(c) $1.70? 3. If all the shares were ranked equally according to the constitution in distributing any surplus or deficiency, how would the statement of the cash distribution to shareholders change?