The following is the shareholders equity section of Suozzi Corp. at December 31, 2017:

Preferred shares, authorized 100,000 shares; issued 25,000 shares $ 750,000

Common shares (unlimited authorized, 60,000 issued) 1,800,000 Contributed surplus 200,000 Total paid-in capital 2,750,000 Retained earnings 2,470,500 Total shareholders equity $5,220,500

The preferred shares have a $3 dividend rate, are cumulative, and participate in distributions in excess of a $4 dividend on the common shares.

a)No dividends were paid in 2015 or 2016. On December 31, 2017, Suozzi wants to pay a cash dividend of $4 per share to common shareholders. How much cash would be needed for the total amount to be paid to preferred and common shareholders? (Hint: When calculating the participating preferred share dividend, round any percent calculations to 2 signifi cant digits).

b) The company decides instead that it will declare a 15% stock dividend on the outstanding common shares. The common shares fair value on the date of declaration is $45 per share. Prepare the entry on the date of declaration.

c) The company decides instead to acquire and cancel 10,500 common shares at the current fair value of $45 per share. Prepare the entry to record the retirement, assuming the contributed surplus balance arose from previous cancellations of common shares.

Please answer a,b and c