Crawl Inc., has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017, and December 31, 2018. The board of directors declared and paid a $2,000 dividend in 2017. In 2018, $10,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2018?

Question

Quizplus · Accepted Answer

The preferred stockholders are entitled to a $3,000 dividend ($1,000 shares x $3 annual dividend per share). The remaining $7,000 is available to the common stockholders.

Crawl Inc, Has 1,000 Shares of 6%, $50 Par Value, Cumulative