Question-based on, "stock". I have tried it but no solution. Sunland, Inc. has 26400 shares of 6%, $100 par value, noncumulative preferred stock and 48300 shares of $1 par value commonstock outstanding at December 31, 2021. There were no dividends declared in 2020. The board of directors declares and pays a$261000 dividend in 2021. What is the amount of dividends received by the common stockholders in 2021?O $0O $102600$261000O $158400

Answered: Sunland, Inc. has 26400 shares of 6%,…

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-based on, "stock".

I have tried it but no solution.

Sunland, Inc. has 26400 shares of 6%, $100 par value, noncumulative preferred stock and 48300 shares of $1 par value common
stock outstanding at December 31, 2021. There were no dividends declared in 2020. The board of directors declares and pays a
$261000 dividend in 2021. What is the amount of dividends received by the common stockholders in 2021?
O $0
O $102600
$261000
O $158400

Expert Solution

Introduction

Non-cumulative preference share can be defined as that type of preference share which pays dividend only for the current year (if the company decides to declare dividend), i.e., a preference shareholder cannot claim any unpaid dividends from the previous years. In this case, there were no dividends in the year 2020; therefore, in the year 2021, the preference shareholder cannot claim the unpaid dividends of 2020.

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