SOLVED

14) Use the facts from #13, above, to determine how much each of the three classes of shares receives of the $1,000,000 cash dividend if dividends were last declared in 2017. 15) Which statement is correct regarding dividend entitlement? A) Cumulative preferred shares do not have any rights to missed dividend payments. B) Non-cumulative preferred shares must be paid all missed dividend payments when dividends are declared. C) A corporation need only pay dividends when it declares them to be payable. D) A company can avoid paying dividends in arrears on cumulative preferred shares if it is to pay dividends on common shares. 16) Explain what a “property dividend ” is and why it is not common. Under what circumstances would a property dividend be advisable? 17) IAS 1, Presentation of Financial Statements, stipulates that a complete set of financial statements includes a statement of changes in equity for the period. The statement of changes in equity provides information about the changes that took place during the period in all equity accounts. List the four equity accounts. 18) What needs to be reconciled in each of the components of the statement of changes in equity?