Cumulative Preferred Dividends}

Share capital of Barr Company Ltd. includes:

As of December 31, 2017, two years' dividends are in arrears on the preferred shares. During 2018. Barr plans to pay dividends that total \(\$ 360,000\).

Required:
1. Determine the amount of dividends that will be paid to Barr's common and preferred shareholders in 2018.
2. If Barr paid \(\$ 280,000\) of dividends, determine how much each group of shareholders would receive.
Exercise

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Common shares, no par, 650,000 shares issued and outstanding Preferred shares, 15% cumulative, $60 stated value. 10.000 shares issued and outstanding $3,250,000 600.000