The issued share capital of Alpha, a limited liability company, is as follows:
$
Ordinary shares of 10c each 1,000,000
8% Preference shares of 50c each 500,000
In the year ended 31 October 2002, the company has paid the preference dividend for the year and an interim
dividend of 2c per share on the ordinary shares. A final ordinary dividend of 3c per share is proposed.
What is the total amount of dividends relating to the year ended 31 October 2002?
A $580,000
B $90,000
C $130,000
D $540,000

D 5c × 10,000,000 + 8% × $500,000