Beckham Corporation has 3,000 shares of $100 par value,7 percent cumulative preferred stock,and 10,000 shares of $10 par value common stock outstanding during its first five years of operation.Beckham Corporation paid cash dividends as follows: 2009,$30,000; 2010,$0; 2011,$65,000; 2012,$30,000; 2013,$15,000.The amount of dividends received by the common stockholders during 2012 was

Question

Quizplus · Accepted Answer

The preferred stock dividend is $21,000 annually (3,000 shares x $100 x 7%). By 2012, $63,000 in preferred dividends were in arrears (2009: $9,000, 2010: $21,000, 2011: $33,000). In 2012, $30,000 was paid, covering $21,000 for 2012 and $9,000 of arrears, leaving $9,000 for common stockholders.

Beckham Corporation Has 3,000 Shares of $100 Par Value,7 Percent