Beckham Company has 1,000 shares of 6%, $100 par cumulative preference shares outstanding at December 31, 2011.No dividends have been paid on these shares for 2010 or 2011.Dividends in arrears at December 31, 2011 total

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The cumulative preference shares have a 6% dividend rate on a $100 par value, which equals $6 per share annually. With 1,000 shares, the annual dividend is $6,000. Since no dividends were paid for 2010 and 2011, the dividends in arrears total $12,000 ($6,000 for each year).

Beckham Company Has 1,000 Shares of 6%, $100 Par Cumulative