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: 2006, $10,500; 2007, $0; 2008, $65,000; 2009, $30,000; 2010, $15,000. The amount of dividends the common stockholders received during 2006 was

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In 2006, the preferred stockholders are entitled to a dividend of $21,000 (3,000 shares x $100 par x 7%). Since only $10,500 was paid, all of it goes to the preferred stockholders, leaving nothing for common stockholders.

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