Megan Ltd$.$ has $10,000$ cumulative and fully participating $$7$ preferred shares issued and outstanding $($issue price $$100$ each$).$ It also has $50,000$ common shares issued and outstanding $($issue price $$20$ each$).$ The December $31,20$x$1,$ preferred dividends are in arrears for one year. The common matching dividend is $$1\mathrm{.}40.$ Participation is based on relative total contributed capital balance of each share type. What total dividend must Megan declare to preferred shareholders on December $31,20$x$2?$ Total dividends declared for the year is $$270,000$

You Answered

$$140,000$

$$150,000$

$$70,000$

Correct Answer

$$170,000$

Could you explain pls$?$