Reference no: EM132004861

Question - A Corporation has paid all required preferred dividends through 2009 December 31. Its outstanding stock consists of 10,000 shares $125 par value common stock and 6,000 shares of 5 percent, $135 par value preferred stock. During five successive years, the corporation's dividend declarations were as follows:

Year Amount

2010 $85,000

2011 52,500

2012 7,500

2013 15,000

2014 67,500

Compute the amount of dividends that would have been paid to each class of stock in each of the five years assuming the preferred stock is:

1. Cumulative.

2. Noncumulative.

You must show all computations.