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In each of the following independent cases, the corporation has outstanding 2 0 , 0 0 0 , $ 0 . 8 0 , preferred

In each of the following independent cases, the corporation has outstanding 20,000, $0.80, preferred shares, with a carrying value of $200,000, and 80,000 common shares, with a carrying value of $800,000. No dividends have been declared for 2017 or 2018.
(a) At December 31,2019, the board of directors wants to distribute $125,000 in dividends. How much will the preferred shareholders and common shareholders receive if their shares are cumulative and nonparticipating?
(b) On December 31,2019, the preferred shareholders received an $80,000 dividend on their shares, which are cumulative and fully participating. How much money was distributed to common shareholders and how much in total for dividends?
(c) At December 31,2019, the board of directors wants to distribute $200,000 in dividends. How much will the preferred shareholders and common shareholders receive if their shares are cumulative and fully participating?

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