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Question - Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued 40,000 shares of $50 par value preferred stock and 300,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends:
December 2016 $90,000
December 2017 130,000
December 2018 190,000
Required -
1. Show the allocation of dividends to each class of stock, assuming that the preferred stock is 8% and not cumulative.
2. Show the allocation of dividends to each class of stock, assuming that the preferred stock is 9% and cumulative.
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