Go Get Inc. has the following shares outstanding:

64,000, $0.9, no par value preferred shares $640,000

80,000 no par value common shares $800,000

It is now December 31, 2020, and the board of directors wants to distribute $290,000 in dividends. Dividends were not paid on preferred in the proceeding two years.

Instructions

Calculate how much the preferred and common shareholders will receive under each of the following assumptions:

a) The preferred is cumulative and fully participating.

b) The preferred is cumulative and participating to 12% total.