Loma Inc. has $6,000,000, $0.60, no par value preferred shares (6000 shares) and $4,000,000 of no par value common shares outstanding (40,000 shares). No dividends have been paid or declared during 2024, 2025, and 2026. As of December 31, 2027, assume that the directors decide to declare total dividends in the amount of $420,000

Required

A)The preferred is noncumulative and nonparticipating.

B)The preferred is cumulative and nonparticipating.

C)The preferred is cumulative and fully participating.

D)The preferred is noncumulative and are participating in the distribution in excess of an 8% dividend rate on the common shares

Set up your answer for parts a), b), c) d) as :

a)PreferredCommonTotal