Elmwood Corporation reported earnings per share of $5.00 for the year ended December 31, 2010. The following facts pertain to Elmwood Corporation:
80,000 shares of common stock were issued and outstanding on December 31, 2009.
40,000 shares of common stock were issued for cash on July 1, 2010.
Net income for 2010 was $650,000.
There were 8,000 shares of nonconvertible preferred stock outstanding during 2010.
Dividends of $20,000 were declared and paid to common stockholders during 2010.
Calculate the amount of dividends declared during 2010 on the nonconvertible preferred stock.

Question

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The Answer of Elmwood Corporation reported earnings per share of $5.00 for the year ended December 31, 2010. The following facts pertain to Elmwood Corporation:
80,000 shares of common stock were issued and outstanding on December 31, 2009.
40,000 shares of common stock were issued for cash on July 1, 2010.
Net income for 2010 was $650,000.
There were 8,000 shares of nonconvertible preferred stock outstanding during 2010.
Dividends of $20,000 were declared and paid to common stockholders during 2010.
Calculate the amount of dividends declared during 2010 on the nonconvertible preferred stock.

Elmwood Corporation Reported Earnings Per Share of $5