34. Anders, Inc., has 5,000 shares of 6%, $100 par value, preferredstock and 20,

Question

34.

Anders, Inc., has 5,000 shares of 6%, $100 par value, preferredstock and 20,000 shares of $1 par value common stock outstanding atDecember 31, 2009. The board of directors declares and pays a$50,000 dividend in 2009. What is the amount of dividends receivedby the Preferred and common stockholders in 2009? (PR11-1)

A)

Preferred Stockholders dividends ____________________

B)

Common Stockholders Dividends ___________________

34.

Anders, Inc., has 5,000 shares of 6%, $100 par value, preferredstock and 20,000 shares of $1 par value common stock outstanding atDecember 31, 2009. The board of directors declares and pays a$50,000 dividend in 2009. What is the amount of dividends receivedby the Preferred and common stockholders in 2009? (PR11-1)

A)

Preferred Stockholders dividends ____________________

B)

Common Stockholders Dividends ___________________

Explanation / Answer

A) Preferred stockholders dividends is $ 30,000       5,000 x 100 x 6% B) Common stockholders dividends $ 20,000       $50,000 - $30,000 = $ 20,000

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