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  3. in 20x3, snowboard ltd. had the following share ca

In 20X3, Snowboard Ltd. had the following share capital outstanding: ...

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Accounting

In 20X3, Snowboard Ltd. had the following share capital outstanding:
Preferred shares, no-par value; $1.60 dividend: authorized, unlimited shares; issued, 100,000 shares $ 1,200,000
Common shares, no-par value; authorized, unlimited shares; issued, 640,000 shares 896,000
No dividends were declared in 20X1 or 20X2, but $1,480,000 of dividends were declared in 20X3.
Required:
Calculate the amount of dividends that would be paid in 20X3 to each share class under the following separate cases:
Case A Preferred shares are cumulative and non-participating.
Case B Preferred shares are cumulative and participating with common shares after the common shares receive a $1 per share dividend. Participation is based on relative annual total base dividends.

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