Athleetz, Inc., [AI] reported 2,000,000 no par common shares and 1,000,000 no par, $0.90 preferred shares authorized, on January 1, 2018. On the same date, 300,000 common shares [contributed capital $3,600,000] and 175,000 preferred shares [contributed capital $3,500,000] were outstanding.

[29] For This Question Only, assume that the preferred shares were non-cumulative and non-participating. The company declared and paid a cash dividend on December 1, 2018 of $658,800. Dividends had not been declared for the past two years, 2016 and 2017. How much will each shareholder group receive?

a.

$472,500 to Preferred Shareholders and $186,300 to Common Shareholders.

b.

$658,800 to Common Shareholders and ZERO to Preferred Shareholders as they are non-participative.

c.

$439,200 to Common Shareholders and $219,600 to Preferred Shareholders as the common shareholders carry more risk and so they must receive twice as much as the preferred shareholders receive.

d.

Each group receives an equal amount of $329,400 per group.

e.

Preferred Shareholders: $157,500; Common Shareholders: $501,300.