Era Company has 3,000 shares of 6%, $100 par noncumulative preferred stock outstanding at December 31, 2021.No dividends have been paid on this stock for 2020 or 2021.Dividends in arrears at December 31, 2021 total

Question

Quizplus · Accepted Answer

Since the preferred stock is noncumulative, dividends do not accumulate if they are not declared. Therefore, there are no dividends in arrears.

Era Company Has 3,000 Shares of 6%, $100 Par Noncumulative