Garnet Trust has the following classes of stock:Data tablePreferred Stock—5%, $15 Par Value; 9,000 shares authorized, 7,500 shares issued and outstandingCommon Stock—$0.15 Par Value; 2,250,000 shares authorized, 1,750,000 shares issued and outstandingRequirements1.Garnetdeclares cash dividends of$22,000for2024.How much of the dividends goes to preferred stockholders? How much goes to common stockholders?2.Assume the preferred stock is cumulative andGarnetpassed the preferred dividend in2022and2023.In2024,the company declares cash dividends of$28,000.How much of the dividend goes to preferred stockholders? How much goes to common stockholders?3.Assume the preferred stock is noncumulative andGarnetpassed the preferred dividend in2022and2023.In2024,the company declares cash dividends of$28,000.How much of the dividend goes to preferred stockholders? How much goes to common stockholders? Requirement 1.Garnetdeclares cash dividends of$22,000for2024.How much of the dividends goes to preferred stockholders? How much goes to common stockholders? (Complete all input boxes. Enter "0" for any zero amounts.) Garnet'sdividend would be divided between preferred and common stockholders in this manner: Total Dividend Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders Dividend to common stockholders

Dividend is return to shareholders in consideration of their investments. Preference shareholders…

Answered: Garnet Trust has the following classes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Garnet Trust has the following classes of stock:

Data table

Preferred Stock—5%, $15 Par Value; 9,000 shares authorized, 7,500 shares issued and outstanding

Common Stock—$0.15 Par Value; 2,250,000 shares authorized, 1,750,000 shares issued and outstanding

Requirements

1.	Garnet declares cash dividends of $22,000 for 2024. How much of the dividends goes to preferred stockholders? How much goes to common stockholders?
2.	Assume the preferred stock is cumulative and Garnet passed the preferred dividend in 2022 and 2023. In 2024, the company declares cash dividends of $28,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?
3.	Assume the preferred stock is noncumulative and Garnet passed the preferred dividend in 2022 and 2023. In 2024, the company declares cash dividends of $28,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?

Requirement 1.

Garnet

declares cash dividends of

$22,000

for

2024.

How much of the dividends goes to preferred stockholders? How much goes to common stockholders? (Complete all input boxes. Enter "0" for any zero amounts.)

Garnet's

dividend would be divided between preferred and common stockholders in this manner:

Total Dividend
Dividend to preferred stockholders:
Dividend in arrears
Current year dividend
Total dividend to preferred stockholders
Dividend to common stockholders