Luther Inc., has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2010, and December 31, 2009. The board of directors declared and paid a $5,000 dividend in 2009. In 2010, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2010?

Question

Quizplus · Accepted Answer

The Answer of Luther Inc., has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2010, and December 31, 2009. The board of directors declared and paid a $5,000 dividend in 2009. In 2010, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2010?