How is the dividend allocated between preferred and common


Saturn Corporation has 19,000 shares of 10%, $82 par noncumulative preferred stock outstanding and 23,000 shares of nominus-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $188,000. How is the dividend allocated between preferred and common stockholders?

A) The dividend is allocated $85,048 to preferred stockholders and $102,952 to common stockholders.

B) The dividend is allocated $188,600 to preferred stockholders and $600 to common stockholders.

C) The dividend is allocated $155,800 to preferred stockholders and $32,200 to common stockholders

D) The dividend is allocated $6,605 to preferred stockholders and $102,952 to common stockholders.

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Accounting Basics: How is the dividend allocated between preferred and common
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