Use the following information to answer questions 1 and 2.
This is the shareholders’ equity of Pinnacle on Dec 31, 2016.
Common share (200,000 issued and
outstanding)
$ 800,000
7 percent, preferred shares (20,000 authorized, 18,000
issued)
200,000
Retained earnings
650,000
Total
$ 1,650,000
Notes:
Preferred shares were issued on Jan 1, 2013.
No dividends declared or paid since 2013 until Pinnacle
declared and paid $400,000 dividends on Dec 31, 2016.
Assuming preferred shares...