1) Sweet Company’s outstanding stock consists of 1,600 shares of cumulative 4% p

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1) Sweet Company’s outstanding stock consists of 1,600 shares of cumulative 4% preferred stock with a $100 par value and 11,600 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Dividend Declared Year 1 $ 3,600 Year 2 $ 7,600 Year 3 $ 40,000
The total amount of dividends paid to preferred and common shareholders over the three-year period is:
2) Chang Industries has bonds outstanding with a par value of $208,000 and a carrying value of $215,000. If the company calls these bonds at a price of $211,000, the gain or loss on retirement is:

1) Sweet Company’s outstanding stock consists of 1,600 shares of cumulative 4% preferred stock with a $100 par value and 11,600 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Dividend Declared Year 1 $ 3,600 Year 2 $ 7,600 Year 3 $ 40,000
The total amount of dividends paid to preferred and common shareholders over the three-year period is:
2) Chang Industries has bonds outstanding with a par value of $208,000 and a carrying value of $215,000. If the company calls these bonds at a price of $211,000, the gain or loss on retirement is:

1) Sweet Company’s outstanding stock consists of 1,600 shares of cumulative 4% preferred stock with a $100 par value and 11,600 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Dividend Declared Year 1 $ 3,600 Year 2 $ 7,600 Year 3 $ 40,000
The total amount of dividends paid to preferred and common shareholders over the three-year period is: 1) Sweet Company’s outstanding stock consists of 1,600 shares of cumulative 4% preferred stock with a $100 par value and 11,600 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Dividend Declared Year 1 $ 3,600 Year 2 $ 7,600 Year 3 $ 40,000
The total amount of dividends paid to preferred and common shareholders over the three-year period is:
2) Chang Industries has bonds outstanding with a par value of $208,000 and a carrying value of $215,000. If the company calls these bonds at a price of $211,000, the gain or loss on retirement is:

Explanation / Answer

1 Annual preferred dividends = 1600*100*4%= 6400 Year Dividend Declared Preferred dividends Common dividends 1 3600 3600 2 7600 7600 3 40000 8000 32000 2 Gain on retirement = 215000-211000 = $4000

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