Binkerton Company has the same capital structure for 2015, 2016 and 2017 as follows: 70,000...
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Accounting
Binkerton Company has the same capital structure for 2015, 2016 and 2017 as follows:
70,000 , 4.5%, preferred shares $ 840,000
290,000 common shares 1,160,000
Total share capital $2,000,000
Dividends of $350,000 were declared and paid on December 31, 2017. The last dividend was paid December 31,2014.
Required:
Calculate the amount of dividends to be distributed to the preferred shareholders and to the common shareholders assuming that the preferred shares are cumulative, and fully participating.
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