V-In-Future, Inc., [VIF] reported 1,000,000 no par common shares and 500,000 no par, $0.60 preferred shares authorized, on January 1, 2018. On the same date, 600,000 common shares [contributed capital $1,800,000] and 350,000 preferred shares [contributed capital $1,750,000] were outstanding. Assume that the preferred shares were non-cumulative and non-participating. The company declared and paid a cash dividend on December 1, 2018 of $1,098,000. Dividends had not been declared for the past two years, 2016 and 2017.

However, now assume that for this question only that the preferred shares were non-cumulative and fully participating. How much will each shareholder group receive?

a. All $1,098,000 to Common since the Preferred are non-participating.

b. Each group receives an equal amount of $549,000 per group.

c. $541,268 to Preferred and $556,732 to Common.

d. $630,000 to Preferred and $468,000 to Common.

e. None of the above.