The following selected financial information was extracted from the December 31, 2020, financial records of Moratti Company:

		Debit		Credit
Cash		393,000
Preferred shares (unlimited authorized, 10% non-cumulative dividend, 55,000 shares issued)				110,000
Common shares (393,000 shares authorized, 55,000 issued)				245,000
Retained earnings (before closing entries)				137,000
Net income loss for 2020		102,000

The companys board of directors is contemplating declaring a dividend on common shares. The companys common shares are currently selling for $7 per share. Morattis board is also expected to declare a preferred shared dividend of 10%.