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.

Continue with the same information given above. However, now assume that for this question only, the preferred shares were cumulative and participating in excess distributable dividends after allocating common share holders a minimum dividend of $0.50 per share. How much will each shareholder group receive? [ROUND YOUR ANSWERS TO THE NEAREST $]

a.

$490,394 to Preferred and $168,406 to Common.

b.

$330,676 to Preferred and $328,124 to Common.

c.

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

d.

$630,000 to Preferred and $28,800 to Common.

e.

None of the above.