c) The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.) Preferred   Common $     $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wildhorse Company’s ledger shows the following balances on December 31, 2020.

7% Preferred Stock—$10 par value, outstanding 20,500 shares   $ 205,000
Common Stock—$100 par value, outstanding 32,100 shares   3,210,000
Retained Earnings   585,000


Assuming that the directors decide to declare total dividends in the amount of $343,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock.

c) The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

Preferred
 
Common
$
 
  $
 
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