Ned Company reported the following information for its fiscal year: $$\begin{array} { | l | r | }
\hline \text { Net income } & \$ 500,000 \
\hline \text { Preferred dividends } & 30,000 \
\hline\text { Common share dividends }&\text { 20,000 }\
\hline \text { Preferred shares are cumulative and carry an annual dividend of } & 10,000 \
\hline
\end{array}$$ The preferred dividends listed above include the current year and prior accumulated dividends.What is the amount of net income available to common shareholders?
A)$440,000
B)$450,000
C)$470,000
D)$490,000

Question

Ned Company reported the following information for its fiscal year: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 500,000 \
\hline \text { Preferred dividends } & 30,000 \
\hline\text { Common share dividends }&\text { 20,000 }\
\hline \text { Preferred shares are cumulative and carry an annual dividend of } & 10,000 \
\hline
\end{array}$$ The preferred dividends listed above include the current year and prior accumulated dividends.What is the amount of net income available to common shareholders?
A)$440,000
B)$450,000
C)$470,000
D)$490,000

Quizplus · Accepted Answer

The Answer of Ned Company reported the following information for its fiscal year: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 500,000 \
\hline \text { Preferred dividends } & 30,000 \
\hline\text { Common share dividends }&\text { 20,000 }\
\hline \text { Preferred shares are cumulative and carry an annual dividend of } & 10,000 \
\hline
\end{array}$$ The preferred dividends listed above include the current year and prior accumulated dividends.What is the amount of net income available to common shareholders?
A)$440,000
B)$450,000
C)$470,000
D)$490,000

Ned Company Reported the Following Information for Its Fiscal Year