If the companys preferred stock is non-cumulative and the


Question - A company has the followng outstanding stock at the end of both 20X7 and 20X8

• Preferred Stock (6%, $100 par value, 1,000 shares issued and outstanding)

• Common Stock ($1 par value, 200,000 shares issued and outstanding)

If the company's preferred stock is non-cumulative and the 20X8 dividend declared amounts to a total of $20,000, how much will go to preferred stockholders?

$6,000

$8,000

$12,000

$14,000

$20,000

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Accounting Basics: If the companys preferred stock is non-cumulative and the
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