A corporation has 10,000 shares of 7%, $50 par preferred stock outstanding and 130,000 shares of no-par common stock outstanding. Dividends in arrears are $42,500. At the end of the current year, the corporation declares a dividend of $90,000. What is the dividend allocated between preferred and common shareholders? A.The dividend is allocated $12,500 to preferred and $77,500 to common. B. The dividend is allocated $35,000 to preferred and $55,000 to common. C. The dividend is allocated $90,000 to preferred and $0 to common. D. The dividend is allocated $77,500 to preferred and $12,500 to common.
A corporation has 10,000 shares of 7%, $50 par preferred stock outstanding and 130,000 shares of no-par common stock outstanding. Dividends in arrears are $42,500. At the end of the current year, the corporation declares a dividend of $90,000. What is the dividend allocated between preferred and common shareholders? A.The dividend is allocated $12,500 to preferred and $77,500 to common. B. The dividend is allocated $35,000 to preferred and $55,000 to common. C. The dividend is allocated $90,000 to preferred and $0 to common. D. The dividend is allocated $77,500 to preferred and $12,500 to common.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...
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Which one is correct?
A corporation has 10,000 shares of 7%, $50 par preferred stock outstanding and 130,000 shares of no-par common stock outstanding. Dividends in arrears are $42,500. At the end of the current year, the corporation declares a dividend of $90,000. What is the dividend allocated between preferred and common shareholders?
A.The dividend is allocated $12,500 to preferred and $77,500 to common.
B. The dividend is allocated $35,000 to preferred and $55,000 to common.
C. The dividend is allocated $90,000 to preferred and $0 to common.
D. The dividend is allocated $77,500 to preferred and $12,500 to common.
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