$*$E$15-22($Preference Dividends$)$ Martinez Company's ledger shows the following balances on December $31,2015.$

Share Capital$-$Preference, $5\%-10$ par value, outstanding $20,000$ shares

Share Capital$-$Ordinary $-100$ par value, outstanding $30,000$ shares Retained Earnings

$200,000$

$3,000,000$

$630,000$

Instructions

Assuming that the directors decide to declare total dividends in the amount of $266,000,$ determine how much each class of shares should receive under each of the conditions stated below. One year's dividends are in arrears on the preference shares.

$($a$)$ The preference shares are cumulative and fully participating.

$($b$)$ The preference shares are non$-$cumulative and non$-$participating.

$($c$)$ The preference shares are non$-$cumulative and are participating in distributions in excess of a $7\%$ dividend rate on the ordinary shares.