Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par valuecommon stock outstanding at December 31, 2018, and December 31, 2017. The board of directors declared and paid an$8,000 dividend in 2017. In 2018, $40,000 of dividends are declared and paid. What are the dividends received by thepreferred stockholders in 2018?A. $28,000B. $12,000C. $20,000D. $10,000

Cumulative preferred stock :— It is one of the type of preference share in which annual dividend is…

Answered: Luther Inc., has 4,000 shares of 5%,…

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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Bonita, Inc., has 3150 shares of 5%, $100 par value, cumulative preferred stock and 25200 shares of $1 par value common stock outstanding from December 31, 2018 through Dec. 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $28000 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020? $15750 O $0 O $28000 O $8750
Miriah Inc. has 6,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? Select one: a. $30,000 in total b. $0.50 per share c. $50 per share d. $300 in total
On December 31, 2017, Berclair Inc. had 360 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 88 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $550 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Please don't provide answer in image format thank…
2) During 2016-2020, IPO Corporation had the following issuances of shares outstanding for the entire period: 20,000 shares of $5.00 cumulative preferred shares 50,000 common shares issued at $10 each Cash dividends declared by the board of directors during 2016 - 2020 were as follows: 2016 none 2017 $125,000 2018 $200,000 2019 $250,000 2020 $325,000 Required: Compute the amount of total dividends and dividends per share payable to each class of shares for 2016-2020. Total Per Share Total Per Share Year Preferred Preferred Common Common 2016 2017 2018 2019 2020
At December 31, 2016, ABC Co. had 5,000, 8%, $120 par, preference shares issued and outstanding and 5,000, $10 par ordinary shares issued and outstanding. The company paid a total cash dividend of $30,000, $66,000 and $84,500 for the years 2017, 2018 and 2019 respectively. Required For ABC Co.: Calculate the cash dividend per share to be received by preference shareholders and ordinary shareholders for the years 201/, 2018 and 2019 assuming the preference shares are cumulative and fully participating
The shareholders' equity of Tru Corporation includes $600,000 of $1 par common stock and $1,200,000 par value of 6% cumulative preferred stock. The board of directors of Tru declared cash dividends of $150,000 in 2016 after paying $60,000 cash dividends in each of 2015 and 2014. Required: What is the amount of dividends common shareholders will receive in 2016? Show your computations. And show 2014, 2015 and 2016.
Stanley Company has 18,000 outstanding shares of $25 par, 6.25% preferred stock, and 22,000 shares of $3 par value common stock. The Board of Directors declared and paid the following dividends: $20,000 in 2021, $30,000 in 2022, and $200,000 in 2023. 1. 2. Calculate the total amount of dividends allocated to both preferred and common shareholders in 2023 for the following type of preferred stock: noncumulative and participating. Show calculations and label answers (yellow highlight). Same as above except calculate the dividends allocated to both preferred and common shareholders in 2023 for the following type of preferred stock: cumulative and nonparticipating. Show calculations and label answers (yellow highlight).
On December 31, 2017 Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, 100 par value ccumulative preferred stock issued and outstanding. On march 1 2018 Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018 was 850 million. The income tax rate is 40% Also oustanding at December 31 were incentive stock options granted to key executives on September 13, 2013. Thee options are exercisable as of September 13, 2017 for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share. In 2014, 62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value. Ccompute Berclair's basic and diluted earnings per sharefor the year ended December 31, 2018.
Ayayai Corp. has 4,200 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $128,000 cash dividend.Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $ 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $ 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $
Sunland Company has 600 shares of 10%, $100 par value, cumulative preferred stock and 30000 shares of $1 par value common stock outstanding at December 31, 2017. What is the annual dividend on the preferred stock?
Corgi, Inc. has the following stock issued as of December 2015: 6% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock dividend is cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Corgi declares dividends of $210,000. How much of this dividend will be distributed to Common Stock?
Dulcinea Corporation had $1,000,000 of net income in 2022. On January 1, 2022, there were 225,000 shares of common stock outstanding. On April 1, there were 12,000 additional shares issued. On July 1, Dulcinea issued a 10% stock dividend and on September 1, Dulcinea bought 20,000 shares of treasury stock. The market price of the common stock averaged $30 during 2022. The tax rate is 30%. During 2022, there were 10,000 shares of cumulative, convertible preferred stock outstanding. The preferred is $100 par, pays $4 per share in dividends per year and each share of preferred stock is convertible into two shares of common stock. Dulcinea issued $5,000,000 of 5% convertible bonds at face value ten years earlier. All bonds remained outstanding throughout 2022. Each $1,000 bond is convertible into 10 shares of common stock. Required: Calculate the weighted average number of shares outstanding for 2022 to be used to calculate basic earnings per share. Compute basic…

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