Lea Corp. declared $ 35,000 in dividends in 2021. Share capital consists of 1,100 common shares and 3,700, $ 2 preferred shares. Dividends have not been paid on the preferred shares since 2018.
Instructions
Determine the dividends to be paid on preferred shares assuming:
a) the preferred shares are cumulative.
b) the preferred shares are noncumulative.

Question

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The Answer of Lea Corp. declared $ 35,000 in dividends in 2021. Share capital consists of 1,100 common shares and 3,700, $ 2 preferred shares. Dividends have not been paid on the preferred shares since 2018.
Instructions
Determine the dividends to be paid on preferred shares assuming:
a) the preferred shares are cumulative.
b) the preferred shares are noncumulative.

Lea Corp Declared $ 35,000 in Dividends in 2021