The partial shareholders’ equity section of Getz Inc. as at December 31, 20×4 is as follows: Common shares, 500,000 shares outstanding $6,500,000 Preferred shares, $6, 20,000 shares outstanding 2,000,000 Retained earnings 1,900,000 The preferred share dividends were last declared on December 31, 20×1. There were no issue or repurchase of preferred shares during the year ended December 31, 20×5. On December 15, 20×5 the board of directors declared a total dividend of $1,000,000. Required – How much dividends will be declared to common and preferred shareholders under the following assumptions: a. The preferred shares are non-cumulative and non-participating. b. The preferred shares are cumulative and non-participating. c. The
