Chapter 15, Problem 15.1MC

Boone Corporation’s outstanding capital stock on December 15 consisted of the following:

• 30,000 shares of 5% cumulative preferred stock, par value $10 per share, fully participating to dividends. No dividends were in arrears.
• 200,000 shares of common stock, par value $1 per share.

On December 15, Boone declared dividends of $100,000. What was the amount of dividends payable to Boone’s common stockholders?

1. a. $10,000
2. b. $34,000
3. c. $47,500
4. d. $40,000