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Cullumber Corporation has the following capital structure at the end of 20X7: 140,000 Class A...

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Accounting

Cullumber Corporation has the following capital structure at the end of 20X7: 140,000 Class A shares carrying five votes per share. 140,000 Class B shares, carrying one vote per share. Dividends are shared on a 5:1 ratio$5 to Class A for every dollar paid to Class B. Additional information: Cullumber Corporation tax rate is 20%. Net earnings amounted to $2,220,000 for 20X7; there were no discontinued operations. Cullumber paid $1,320,000 in dividends at the end of 20X7.

Required: 1. Determine the amount of dividends that were paid to Class A and Class B shares, both in total and per share for each class.

Dividene Distribution Total Per Share
Class A
Class B
Total Paid $

2. Calculate basic EPS.

Class A Class B
Basic EPS

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