The equity section of a balance sheet at December 31, 2021 is provided below: No dividends were paid during 2019 and 2020, but the company plans to issue a cash dividend of $2,000 on December 31, 2021. Determine the total dividend for each class of stock under each of the following assumptions:
A)The preferred stock is noncumulative and nonparticipating.
B)The preferred stock is cumulative and nonparticipating.

Question

The equity section of a balance sheet at December 31, 2021 is provided below:

No dividends were paid during 2019 and 2020, but the company plans to issue a cash dividend of $2,000 on December 31, 2021. Determine the total dividend for each class of stock under each of the following assumptions:
A)The preferred stock is noncumulative and nonparticipating.
B)The preferred stock is cumulative and nonparticipating.

The Equity Section of a Balance Sheet at December 31