1. On December 31, 2021, the shareholders' equity of Norway Corporation shows the following:

$6 Preferred shares at $100, 4,000 shares outstanding $ 400,000

Common shares, no par, 60,000 shares outstanding 900,000

Retained earnings 420,000

Total shareholders' equity $ 1,720,000

Assume that preferred dividends were last paid on December 31, 2019, and that all of the company's retained earnings are to be paid out in dividends on December 31, 2021.

Instructions If the preferred shares are cumulative and fully participating, how much should each class of shares receive?