Answer:
$4,000
Explanation:
It is provided that preference shares are cumulative in nature, that means even if dividend is not paid in current year, the dividend get accumulated.
The net dividend payable to preference capital = 500 shares @ $10 each share = $5,000
Therefore, total dividend of preference shareholders for all the three years = $5,000 3 = $15,000
Total dividend paid till date = $3,000 + $6,000 + $10,000 = $19,000
Therefore, dividend to equity in 2014 = $19,000 - $15,000 = $4,000
Because even if dividend to preference in 2012 was $3,000, the remaining $2,000 would be carried forward.
And before any dividend to equity, first dividend shall be paid to preference and also no dues of preference dividend shall remain in balance.
