Cleburne Corporation has 3,000 shares of $200 par value,7 percent cumulative preferred stock,and 10,000 shares of $20 par value common stock outstanding during its first five years of operation.Cleburne Corporation paid cash dividends as follows: 2009,$33,000; 2010,$0; 2011,$130,000; 2011,$60,000; 2013,$30,000.The amount of dividends the common stockholders received during 2009 was

Question

Quizplus · Accepted Answer

The preferred stock has priority in receiving dividends, and since Cleburne paid $33,000 in dividends during 2009, all of it is allocated to the preferred stockholders. Therefore, the common stockholders did not receive any dividends in 2009.

Cleburne Corporation Has 3,000 Shares of $200 Par Value,7 Percent