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Question 6 Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and...

Question 6

  1. Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013. What is the amount of dividends received by the common stockholders in 2013?

    A.

    $20,000
    B.

    $50,000
    C.

    $70,000
    D.

    $0
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Answer #1

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given data

given that Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013.

There were no dividends declared in 2012.then the board of directors declares and pays a $120,000 dividend in 2013

the board of directors pays a =120,000

=120,000-(10,000*100)5%*2

=$20,000

the amount of dividends received by the common stockholders in 2013 is

A.$20,000

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