Determine how much each class of stock should receive

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Question - Martinez Company's ledger shows the following balances on December 31, 2012.

Preferred stock (5%; $10 par value, outstanding 20,000 shares: $200,000)

Common stock ($100 par value, outstanding 30,000 shares: $3,000,000)

Retained earnings: 630,000

Assuming that the directors decide to declare total dividends in the amount of $266,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.

Reference no: EM132059802

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