Show the allocation of dividends to each class of stock

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Question - Crane Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,050 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $6,075; 2020, $13,900; and 2021, $28,000.

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative.

 

2019

2020

2021

Allocation to preferred stock

6075

7175

7175

Allocation to common stock

0

6725

20825

Required - Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative.

Reference no: EM132761028

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