Chapter 6, Problem 32P

Financial Accounting

In 2027 Palm Tree Inc. declared $1,000,000 in cash dividends. Its capital structure includes 300,000 common shares; 200,000 cumulative preferred shares "A" each entitled to an annual dividend of $1.00; and 50,000 non-cumulative preferred shares "B" each entitled to an annual dividend of $3.00. The prescribed dividends on both series of preferred shares were last declared and paid in 2025.     Required  Use the following facts to determine how much each of the three classes of shares receives of the $1,000,000 cash dividend.

I am looking for the correct answer to this financial accounting question with appropriate explanations.