The Basket Corporation Has the Following Classes of Shares: Preferred

Multiple Choice

The Basket Corporation has the following classes of shares: Preferred shares, $40, 1,000 shares issued and outstanding, non-cumulative. Common shares, 100,000 shares issued, 50,000 shares outstanding. In 20X1, Basket Corporation was incorporated. It paid no dividends in its first year of existence. In 20X2, the board of directors of Basket declared a total dividend of $180,000 to be paid to the holders of preferred and common shares. What was the amount of the dividend paid in 20X2 on each common share?

A) $1.80
B) $2.00
C) $2.80
D) $3.60