Porter Inc. started its business on January 1, 2018. On December 31, 2020, Porter has outstanding shares as follows:
Preferred shares, 5,000 shares, 3%, non-cumulative $200,000
Common shares, unlimited # of shares authorized, 50,000 issued 35,000 shares outstanding on December 31, 2020 $700,000
The net income (loss) were: $5,000 in 2018, $(55,000) in 2019, and $65,000 in 2020. Which of the following statements is correct? Multiple Choice
a. Porter can pay $6,000 dividends to preferred shareholders in 2018.
b. Porter can pay $59,000 dividends to common shareholders in 2020.
c. Porter can pay $6,000 dividends to preferred shareholders in 2020
d. Porter can pay $15,000 dividends to preferred shareholders in 2020.
e. Both (8) and (C) are correct
