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Question
A company was organized in January 2012 and has 2,000 shares of $100 par value, 10%, nonparticipating preferred stock outstanding and 30,000 shares of $10 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 Stock Is Not Cumulative | Assuming Preferred Stock Is Cumulative | ||||
| Year | Cash Dividends Declared and Paid | Preferred Dividend | Common Dividend | Preferred Dividend | Common Dividend |
| 2012 | $15,000 | ||||
| 2013 | $36,000 | ||||
| 2014 | $60,000 | ||||
Answer
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