multiple choice and add explanation: 5. If the stock dividend is less than 20% how much of the retained earnings shall be capitalized? A. Par value of the shares B. Fair value of the shares on the date of declaration C. Fair value of the shares on the date of record D. Fair value of the shares on the date of issuance Answer the problem: (DIVIDENDS ON PREFERENCE AND ORDINARY SHARES) The BSIT Corp. has outstanding 60,000 shares of 5% preference shares with a P50 par value and 300,000 shares of P30 par ordinary shares. During the current year, the company declared and paid a total cash dividend of P900,000. Required: For each of the following independent cases, compute the total dividends to be received by each class of stock. 1. The preference share is non-cumulative and non-participating. 2. The preference shares is cumulative and non- participating with one year dividends in arrears. 3. The preference shares is non-cumulative and participating. 4. The preference shares is cumulative and participating with non dividends in arrears