Reference no: EM132537787

Question - The Riley Corporation paid cash dividends totaling $150,000 in 2018, $75,000 in 2019, and $800.000 in 2020. There were no dividends in arrears as of January 1, 2018.

Required -

Compute the amount of cash dividends to be received by the preferred and common stockholders in each of the three years under each of the following independent assumptions:

(a) 25,000 shares of common stock; 100,000 shares of 6%, $50 par value, cumulative preferred stock.

(b) 25,000 shares of common stock; 50,000 shares of 6%, $50 par value, noncumulative preferred stock.

(c) 25,000 shares of common stock; 70,000 shares of 6%, $100 par value, cumulative preferred stock.