9Preferred Dividends) Martinez Company's ledger shows the following balances on December 31, 2012.
5% Preferred stock-$10 par value, outstanding 23,440 shares $234,400
Common stock-$100 par value, outstanding 35,160 shares 3,516,000
Retained earnings 738,360
Assuming that the directors decide to declare total dividends in the amount of $311,752, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.
(a) The preferred stock is cumulative and fully participating.
Preferred:
Common:
(b)The preferred stock is noncumulative and nonparticipating.
Preferred:
Common:
(c)The preferred stock is noncumulative and is participating in distributions in excess of a 7% dividend rate on the common stock.
Preferred:
Common: