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Norton Ltd has 5,000, 6% non-cumulative preference shares issued at $100 per share and 100,000 ordinary shares at December 31, 2008 with no change in

Norton Ltd has 5,000, 6% non-cumulative preference shares issued at $100 per share and 100,000 ordinary shares at December 31, 2008 with no change in the issued shares for 2009. The board of directors declared and paid a $25,000 dividend in 2008. In 2009, $50,000 of dividends are declared and paid. What dividends are received by the preference and ordinary shareholders in 2009?

a. Preference$0 Ordinary$50,000

b. Preference$30,000 Ordinary$20,000

c. Preference$35,000 Ordinary$15,000

d. Preference$50,000 Ordinary$0

(choose correct answer please)

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