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TR14-8 Dividends (LO 14-7) On 31 December 20X5, Watercress Properties Ltd. reported the...

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Accounting

TR14-8 Dividends (LO 14-7)
On 31 December 20X5, Watercress Properties Ltd. reported the following in shareholders equity:
Preferred shares, no-par value; $1.00 dividend, authorized, unlimited shares; issued, 81,000 shares $ 2,187,000
Common shares, no-par value; authorized, unlimited shares; issued, 324,000 shares 4,860,000
Retained earnings 6,100,000
Dividends of $429,000 are declared in 20X6. Consider the following three cases:
Preferred Cumulative? Year of Last Dividends Preferred Participating?
Case A No 20X2 No
Case B Yes 20X3 No
Case C Yes 20X5 Yes, after common receive $0.50 per share; participation based on relative dividends at base level
Required:
Calculate dividends to be paid to preferred and common shares in each case. (Do not round intermediate calculations.)

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