Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends paid were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00. Case A Preferred shares are cumulative and non-participating. Year 1 2 3 4 5 Year 1 2 3 Partial Partial Arrears Current Total Partial Arrears Current Total 45 Total Paid Preferred Common $ $ 0 S 0 S 0 $ 0 $ Case B Preferred shares are non-cumulative and non-participating. 0 Total Paid Preferred Common 0

Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends paid were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00. Case A Preferred shares are cumulative and non-participating. Year 1 2 3 4 5 Year 1 2 3 Partial Partial Arrears Current Total Partial Arrears Current Total 45 Total Paid Preferred Common $ $ 0 S 0 S 0 $ 0 $ Case B Preferred shares are non-cumulative and non-participating. 0 Total Paid Preferred Common 0

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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Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends pald were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00.