Harvey Company has 30,000 shares of $150 par value, 8% cumulative preferred stock and 160,000 shares of $60 par value common stock. Harvey declares and pays cash dividends amounting to $640,000.
If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?

Question

Quizplus · Accepted Answer

$150 × 30,000 × 8% = $360,000
Balance to common: $640,000 ? $360,000 = $280,000

Harvey Company Has 30,000 Shares of $150 Par Value, 8