Question

Multiple Choice Question 54 Outstanding stock of the Sunland Corporation included 21100 shares of $5 par common stock and 10550 shares of 5%, $10 par non cumulative preferred stock. In 2019, Sunland declared and paid dividends of $4000. In 2020, Sunland declared and paid dividends of $12600. How much of the 2020 dividend was distributed to preferred shareholders

Answer 1

$5,275

Step-by-step explanation:

Preferred stock dividend = 10,550 shares * $10 * 5%

Preferred stock dividend = 10,550 * 10 * 5%

Preferred stock dividend = $5,275

So therefore, the dividend distributed to preferred shareholders in 2020 was $5,275