Reference no: EM132978068
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 106,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $5,975; 2020, $14,400; and 2021, $27,500.
a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative.
b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 9% and cumulative.
c. Journalize the declaration of the cash dividend at December 31, 2021, under part (b).
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