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A Company Was Organized in January 2016 and Has 20,000

Question 220

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A company was organized in January 2016 and has 20,000 shares of $10 par value,10%,nonparticipating preferred stock outstanding and 150,000 shares of $2 par value common stock outstanding.It has declared and paid cash dividends each year as shown below.Calculate the total dividends distributed to each class of stockholder under each of the assumptions given.
 Assuming Preferred  Assuming Preferred  Stock  Stock  Cash  Is Noncumulative  Is Cumulative  Dividends  Declared  Preferred  Common  Preferred  Common  Year  and Paid  Dividend  Dividend  Dividend  Dividend 2016$18,0002017$36,0002018$60,000\begin{array} { | l | l | l | l | l | l | } \hline & & \text { Assuming Preferred } &&{ \text { Assuming Preferred } } \\\hline & & { \text { Stock } } & &{ \text { Stock } } \\\hline & \text { Cash } & \text { Is Noncumulative } && \text { Is Cumulative } & \\\hline & \text { Dividends } & & & & \\\hline & \text { Declared } & \text { Preferred } & \text { Common } & \text { Preferred } & \text { Common } \\\hline \text { Year }& \text { and Paid } & \text { Dividend } & \text { Dividend } & \text { Dividend } & \text { Dividend } \\ \hline & & & & & \\\hline & & & & & \\\hline 2016 & \$ 18,000 & & & & \\\hline 2017 & \$ 36,000 & & & & \\\hline2018 & \$ 60,000 & & & & \\\hline\end{array}

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