Soy.com Corporation has 100 shares of $100,6% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding.The company paid $2,000 cash dividends including one-year dividends in arrears to preferred stockholders.Preferred stockholders received:

Question

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Preferred stockholders received $1,200 because the annual dividend on preferred stock is 6% of the $100 par value, which equals $6 per share. With 100 shares, the total annual dividend is $600. Since dividends were paid including one year in arrears, this amount is doubled to $1,200.

SoyCom Corporation Has 100 Shares of $100,6% Cumulative Nonparticipating Preferred