398 QUESTION 4 15 / 15 MARKS 399 400 Twin Lakes Limited, since it was organized in January 2020, has had outstanding 1,500, $20, preferred shares, and 20,000 common shares. 401 The corporation declared and paid dividends each year as shown below. 404 Required: Calculate the total dividends distributed to each class of shares under Stach of the assumptions given. 408 409 410 411 Solution: 412 413 Assume Preferred 414 Shares are Non- Assume Preferred Shares 415 Cumulative are Cumulative Year Dividends Preferred Common Preferred Common Declared Dividend Dividend Dividend Dividend 2020 $25,000 $25,000 0 $25,000 0 2021 30,000 30,000 30,000 2022 32,000 30,000 30,000 2023 40,000 0 Total $85,000 $0 $55,000 $30,000