Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends.
-The amount of dividends paid to preferred and common shareholders in year 3 is:

Question

Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends. 
-The amount of dividends paid to preferred and common shareholders in year 3 is:

Quizplus · Accepted Answer

The correct choice is based on the allocation of dividends to preferred and common shareholders, where $7,000 is allocated to preferred shareholders and $25,000 to common shareholders.

Fargo Company's Outstanding Stock Consists of 400 Shares of Noncumulative