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Complete the following with the details provided. A. Broadhaven Corporation has 20,000 outstanding $0.80, preferred shares with a carrying value of $200,000, and 80,000 common
Complete the following with the details provided. A. Broadhaven Corporation has 20,000 outstanding $0.80, preferred shares with a carrying value of $200,000, and 80,000 common shares, with a carrying value of $800,000. The preferred dividends are cumulative and non-participating. Although dividends have been paid regularly up to Year 3, no dividends were declared in Year 4 or Year 5. On December 31, Year 6, the board of directors wants to distribute $200,000 in dividends. How much will the preferred shareholders receive? B. On December 31, Year 3, Singular Inc. has shares outstanding that include 10,000, $3.00, no par value preferred shares, cumulative and fully participating, with a carrying value of $250,000, and 60,000 no par value common shares with a carrying value of $1,250,000. Dividends were up to date as of December 31, Year 1, but no dividends have been paid since that date. The corporation now wishes to distribute $420,000 in dividends. How much will the preferred shareholders receive?
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