Lea Corp Declared $ 35,000 in Dividends in 2021

question 160

Essay

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.

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Definitions:

65 Years

A time period equivalent to sixty-five years, often referenced in discussions of age or time to retirement.

Common Stock

A type of security that represents ownership in a corporation and gives holders voting rights, as well as a share in the company's profits via dividends.

Per Year

A term indicating something occurs, is measured, or is evaluated on an annual basis.

8 Years

A period or duration of eight calendar years.