Accounting Help - Dividend Help?

Outstanding stock of the Wilson Company included 43000 shares of $5 par common stock and 14500 shares of 5%, $10 par non-cumulative preferred stock. In 2016, Wilson declared and paid dividends of $4300. In 2017, Wilson declared and paid dividends of $21500.

How much of the 2017 dividend was distributed to preferred shareholders?

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  • Don G
    Lv 7
    2 months ago

    Since the Preferred is non-cumulative, each year stands alone. In 2016, the entire $4,300 went to the Preferred shareholders. In 2017, they got their annual max of $7,250.

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  • 2 months ago

    I believe I have figured it out.

    14,500 x $10 x 5% = 7250

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