Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions: 1. The preferred stock is noncumulative, nonparticipating

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The Stockholders’ Equity category of Greenbaum Company’s balance sheet as of December 31, 2017, appeared as follows: Preferred stock, $100 par, 8%, 1,000 shares issued and outstanding …………….$ 100,000 Common stock, $10 par, 20,000 shares issued and outstanding ……………………200,000 Additional paid-in capital …………………………………………………………..250,000 Total contributed capital ………………………………………………………….$ 550,000 Retained earnings …………………………………………………………………..450,000 Total stockholders’ equity ……………………………………………………….$1,000,000 The notes to the financial statements indicate that dividends were not declared or paid for 2015 or 2016. Greenbaum wants to declare a dividend of $59,000 for 2017. Required Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions: 1. The preferred stock is noncumulative, nonparticipating. 2. The preferred stock is cumulative, nonparticipating. View Solution:
The Stockholders Equity category of Greenbaum Company s balance sheet as