Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $201300 dividend, the preferred stockholders will receive the entire $201300. O preferred stockholders will receive $45000 and the common stockholders will receive $156300. $45000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive 1/10th of what the common stockholders will receive.
Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $201300 dividend, the preferred stockholders will receive the entire $201300. O preferred stockholders will receive $45000 and the common stockholders will receive $156300. $45000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive 1/10th of what the common stockholders will receive.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 5MC
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100%
Question-based on "dividend".
I have tried it but confused.
Any help would be appreciated.
![Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000
shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors
declares a $201300 dividend, the
preferred stockholders will receive the entire $201300.
O preferred stockholders will receive $45000 and the common stockholders will receive
$156300.
$45000 will be held as restricted retained earnings and paid out at some future date.
preferred stockholders will receive 1/10th of what the common stockholders will receive.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1b773a7-f37b-445d-b41c-c1e5f52af08a%2Ffb67b925-a661-4d62-a25f-2b3d4328eba5%2Fg7vbsbq_processed.gif&w=3840&q=75)
Transcribed Image Text:Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000
shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors
declares a $201300 dividend, the
preferred stockholders will receive the entire $201300.
O preferred stockholders will receive $45000 and the common stockholders will receive
$156300.
$45000 will be held as restricted retained earnings and paid out at some future date.
preferred stockholders will receive 1/10th of what the common stockholders will receive.
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