Watson, Inc. has 10,000 shares of 4%, $100 par value, cumulative preferred stock, and 20,000 shares of $1 par value common stock outstanding on December 31, 2022. Watson had declared and paid all preferred dividends every year through 2020 but did not declare or pay any dividends in 2021. In 2022, the board of directors declares and pays $90,000 in total dividends. What is the amount of dividends received by the common stockholders in 2022? a. $0 b. $10,000 c. $20,000 d. $90,000

Watson, Inc. has 10,000 shares of 4%, $100 par value, cumulative preferred stock, and 20,000 shares of $1 par value common stock outstanding on December 31, 2022. Watson had declared and paid all preferred dividends every year through 2020 but did not declare or pay any dividends in 2021. In 2022, the board of directors declares and pays $90,000 in total dividends. What is the amount of dividends received by the common stockholders in 2022? a. $0 b. $10,000 c. $20,000 d. $90,000

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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