Blue Nose Cold Storage Company Was Incorporated Two Years Ago

question 22

Multiple Choice

Blue Nose Cold Storage Company was incorporated two years ago on 1 January. Since then, the following shares have been issued: On 31 December this year, the company declared and paid a total of $50 000 in dividends. This was the first dividend declared by the firm. That is, until this date no dividends had been declared or paid during the first two years of operations. If the preference shares are cumulative, what is the most that will be available out of the $50 000 dividend for payment to the ordinary shareholders?

• A) $20 000
• B) $30 000
• C) $40 000
• D) $50 000

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Definitions:

Compulsive Behavior Therapy

A type of therapy focusing on identifying and changing harmful compulsive behaviors through various techniques, including cognitive-behavioral therapy.

Counter-Blocking Therapy

A treatment approach intended to counteract or neutralize the effects of another therapy, often used in reference to managing side effects.

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