McNabb Corp. had $100,000 of 7%, $20 par value preferredstock and 12,000 shares of $25 par value commonstock outstanding throughout 2017.(a) Assuming that total dividends declared in 2017were $64,000, and that the preferred stock is notcumulative but is fully participating, commonstockholders should receive 2017 dividends ofwhat amount?(b) Assuming that total dividends declared in 2017 were$64,000, and that the preferred stock is fully participatingand cumulative with preferred dividends inarrears for 2016, preferred stockholders should receive2017 dividends totaling what amount?(c) Assuming that total dividends declared in 2017were $30,000, that the preferred stock is cumulative,nonparticipating, and was issued on January1, 2016, and that $5,000 of preferred dividendswere declared and paid in 2016, the common stockholdersshould receive 2017 dividends totalingwhat amount?
McNabb Corp. had $100,000 of 7%, $20 par value
stock
stock outstanding throughout 2017.
(a) Assuming that total dividends declared in 2017
were $64,000, and that the preferred stock is not
cumulative but is fully participating, common
stockholders should receive 2017 dividends of
what amount?
(b) Assuming that total dividends declared in 2017 were
$64,000, and that the preferred stock is fully participating
and cumulative with preferred dividends in
arrears for 2016, preferred stockholders should receive
2017 dividends totaling what amount?
(c) Assuming that total dividends declared in 2017
were $30,000, that the preferred stock is cumulative,
nonparticipating, and was issued on January
1, 2016, and that $5,000 of preferred dividends
were declared and paid in 2016, the common stockholders
should receive 2017 dividends totaling
what amount?
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