Angelique's Antiques declared and paid cash dividends of $25,000.There were 1,000 shares of 10%,$30 par value,noncumulative preferred stock outstanding.How much of the cash dividends were paid to PREFERRED shareholders?

Question

Quizplus · Accepted Answer

The question specifies that only preferred stock was outstanding, so all of the dividends were paid to preferred shareholders. The calculation of how much they received is: 
1,000 shares x $30 par value x 10% annual dividend = $3,000 in total dividends paid to preferred shareholders.

Angelique's Antiques Declared and Paid Cash Dividends of $25,000