Question

Bramble Corp. has 11000 shares of 5%, $100 par value, cumulative preferred stock and 22000 shares...

Bramble Corp. has 11000 shares of 5%, $100 par value, cumulative preferred stock and 22000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a $99000 dividend in 2016 and in 2017. What is the amount of dividends received by the common stockholders in 2017?

$33000.

$0.

$44000.

$5500
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Dividends to be received by Preference Shareholders= 11000 Shares * $ 100 * 5 %

= $ 55,000

For 2015 Cumulative Dividend = $ 55,000

In 2016 Dividend Paid = $ 99,000

Out of $ 99,000, 2015 Cumulative Dividend of $ 55,000 is paid and $ 44,000 for 2016 is paid.

For 2016 Cumulative Dividend = $ 55,000 - 44,000

= $ 11,000

In 2017 Dividend Paid = $ 99,000

Dividend of 2016 Cumulative Dividend = $ 11,000

Dividend to Preference Shareholders= $ 55,000

Dividend to common stockholders = $ 99,000 - $ 11,000 -$ 55,000

= $ 33,000

Hence the correct answer is $33000.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Kerry Company has 850 shares of $100 par value, 9% preferred stock and 11,900 shares of...
Kerry Company has 850 shares of $100 par value, 9% preferred stock and 11,900 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2013. Since 2013, Kerry has declared and paid dividends as follows: 2014 $ 0 2015 8,850 2016 17,200 2017 21,200 Required: 1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2015 to 2017. If an amount is zero,...
Cash Dividends Kerry Company has 1,200 shares of $100 par value, 7% preferred stock and 11,600...
Cash Dividends Kerry Company has 1,200 shares of $100 par value, 7% preferred stock and 11,600 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2013. Since 2013, Kerry has declared and paid dividends as follows: 2014 $0 2015 9,200 2016 19,800 2017 24,800 1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2015 to 2017. If an amount is zero,...
Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares...
Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $3,000 dividend in 2019. In 2020, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020? Group of answer choices a. Preferred stockholders get $4,000 and Common stockholders get $11,000 b....
Alina Inc., has 4,000 shares of 5%, $50 par value, cumulative and fully participating preferred stock...
Alina Inc., has 4,000 shares of 5%, $50 par value, cumulative and fully participating preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2021, and December 31, 2020. The board of directors declared and paid an $8,000 dividend in 2020. Preferred stockholders received all the dividends for all prior years except the current year (2021). In 2021, $40,000 of dividends are declared and paid. What are the dividends received by the common stockholders in...
Jim Corporation pays its cumulative preferred stockholders $2.40 per share. Jim has 25,000 shares of preferred...
Jim Corporation pays its cumulative preferred stockholders $2.40 per share. Jim has 25,000 shares of preferred and 65,000 shares of common. In 2015, 2016, and 2017, due to slowdowns in the economy, Jim paid no dividends. Now in 2018, the board of directors decided to pay out $630,000 in dividends. How much of the $630,000 does each class of stock receive as dividends? Dividends Preferred stock $ ___________ Common stock $_________
Question 2 Rachel’s Designs has 1,700 shares of 5%, $50 par value cumulative preferred stock issued...
Question 2 Rachel’s Designs has 1,700 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2016. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2016 or 2017. The company plans to pay total dividends of $14,000 in 2018. How much of the $14,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders? Preferred dividends for 2018...
Kirchner Company has 50,000 shares of $10 par value, 6% preferred stock and 300,000 shares of...
Kirchner Company has 50,000 shares of $10 par value, 6% preferred stock and 300,000 shares of $1 par value common stock outstanding. As of December 31, 2018, it had $900,000 of Retained earnings. On December 31, 2019, the Board of Directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared in 2017 and 2018 and no dividends were in arrears prior to 2017. The company is considering the following options. Option...
Green Planet Corp. has (a) 5,000 shares of cumulative 10% preferred stock with a $2 par...
Green Planet Corp. has (a) 5,000 shares of cumulative 10% preferred stock with a $2 par value and (b) 17,000 shares of common stock with a $0.01 par value. During its first two years of operation, Green Planet declared and paid the following total cash dividends. Compute the dividends paid each year to each of the two classes of stockholders: preferred and common.    Year 1 total cash dividends $ 800 Year 2 total cash dividends $ 1,700
TFlounder Corporation has outstanding 9,300 shares of $100 par value, 6% preferred stock and 62,300 shares...
TFlounder Corporation has outstanding 9,300 shares of $100 par value, 6% preferred stock and 62,300 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Flounder declares a cash dividend of $328,000. (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive? Preferred stockholders would receive $enter a dollar amount How much dividend will the common stockholders receive? Common...
Preferred Stock 5% $11 Par Value 5,500 shares authorized 4000 shares issued and outstanding Common Stock...
Preferred Stock 5% $11 Par Value 5,500 shares authorized 4000 shares issued and outstanding Common Stock $.20 Par Value 2,000,000 shares authorized 1,650,000 shares issued and outstanding Requirement 1. Sapphire declares cash dividends of $ 28,000 for 2018. How much of the dividends goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.) Sapphire?'s dividend would be divided between preferred and common stockholders in this? manner: Total Dividend Dividend to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT