Rhubarb Corporation's outstanding stock is 100 shares of $100,11% cumulative nonparticipating preferred stock and 2,000 shares of $12 par value common stock.Rhubarb paid $1,600 cash dividends during the year.Common stockholders received:

Question

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The preferred stockholders are entitled to a dividend of 11% of $100 per share, which is $11 per share. With 100 shares, the total preferred dividend is $1,100. Since the total dividends paid were $1,600, the remaining $500 goes to the common stockholders.

Rhubarb Corporation's Outstanding Stock Is 100 Shares of $100,11% Cumulative