Use the Following Information for Questions

question 20

Multiple Choice

Use the following information for questions. Riga Ltd.has outstanding 100,000 no par common shares and 20,000 no par, $0.40, preferred shares issued at $5 each.The preferred shares are cumulative and non-participating.Dividends have been paid every year except the past two years and the current year.
-The Common Shares account currently shows a balance of $200,000.Assuming that $61,000 will be distributed as a dividend in the current year, and the preferred shares are also fully participating, how much will the common shareholders receive?

• A)$37,000
• B)$30,000
• C)$31,000
• D)$16,000
• Shareholders' Equity 15- 25

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Definitions:

Negative

In the context of charge, negative refers to an electrical charge of the same type carried by electrons.

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding.

Polar Nature

A characteristic of molecules that have an uneven distribution of electron density, resulting in regions of partial positive and negative charge which makes them interact with other polar substances including water.

Attractive Forces

Forces that cause atoms, ions, or molecules to come together, and include various types of chemical bonds and intermolecular interactions.