Ponce Company has 50,000 shares of $100 par value, 8% cumulative preferred stock and 160,000 shares of $60 par value common stock. Ponce declares and pays cash dividends amounting to $440,000.
If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?

Question

Quizplus · Accepted Answer

$100 × 50,000 × 8% = $400,000
Balance to common: $440,000 - $400,000 = $40,000

Ponce Company Has 50,000 Shares of $100 Par Value, 8