Outstanding stock of the Vaughn Corporation included 19900 shares of $5 par common stock and 9950 shares of 7%, $10 par noncumulative preferred stock. In 2020, Vaughn declared and paid dividends of $4000. In 2021, Vaughn declared and paid dividends of $1250O. How much of the 2021 dividend was distributed to preferred shareholders? O $8500 O $4000 O $6965 O None of these answers are correct

Outstanding stock of the Vaughn Corporation included 19900 shares of $5 par common stock and 9950 shares of 7%, $10 par noncumulative preferred stock. In 2020, Vaughn declared and paid dividends of $4000. In 2021, Vaughn declared and paid dividends of $1250O. How much of the 2021 dividend was distributed to preferred shareholders? O $8500 O $4000 O $6965 O None of these answers are correct

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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