On January 1, 2011, Lake Louise Hotels had 30,000 preferred shares (book value $150,000) and 50,000 common shares (book value $500,000) outstanding. The annual preferred dividend was $0.30 per share. Total dividends paid were $0 in 2011, $9,000 in 2012, $0 in 2013, and $80,000 in 2014. There were no dividends in arrears at the beginning of 2011. 6 Required: Calculate the number of dividends that would have been paid to each share class for each year in 2011-2014 under each of the following assumptions.

Case I: The preferred shares are non-cumulative and non-participating

Case II: The preferred shares are cumulative but non-participating

Case II: The preferred shares are cumulative and participating. Participation starts after each common share receives a matching dividend of 9%.