Antiques.com Corporation's outstanding stock is 75 shares of $60,8% cumulative nonparticipating preferred stock and 2,000 shares of $10 par value common stock.Antiques paid $2,760 cash dividends during the year.Common stockholders received:

Question

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Preferred stockholders are entitled to receive $60.80 per share in dividends before any dividends can be paid to common stockholders. Since there are 75 shares of preferred stock outstanding, the total amount of dividends paid to preferred stockholders is $60.80 * 75 = $4,560. The remaining $2,760 - $4,560 = $2,400 is available for distribution to common stockholders.

AntiquesCom Corporation's Outstanding Stock Is 75 Shares of $60,8% Cumulative