Problem $5(10$ Marks$)$

In each of the following independent cases, it is assumed that the corporation

has outstanding $20,000,$ $$0\mathrm{.}80,$ preferred shares, with a carrying value of

$$200,000,$ and $80,000$ common shares, with a carrying value of $$800,000.$

Although dividends have been paid regularly up to $2020,$ no dividends were

declared in $2021$ or $2022.$

a$)$ At December $31,2023,$ the board of directors wants to distribute $$125,000$ in

dividends. How much will the preferred shareholders receive if their shares

are cumulative and non$-$participating?

b$)$ At December $31,2023,$ the board of directors wants to distribute $$200,000$ in

dividends. How much will the preferred shareholders receive if their shares

are cumulative and participating up to $15\%$ in total?

c$)$ On December $31,2023,$ the preferred shareholders received an $$80,000$

dividend on their shares, which are cumulative and fully participating. How

much money was distributed in total for dividends?