Reference no: EM132579220
Question 1: At December 31, 20x0 and 20x1, Carr Corp. had outstanding 4,000 shares of ?100 par value 6% cumulative preferred stock and 20,000 shares of ?10 par value common stock (i.e., ordinary shares). At December 31, 20x0, dividends in arrears on the preferred stock were ?12,000. Cash dividends declared in 20x1 totaled ?44,000. Of the ?44,000, what amounts were payable to each class of stock?
Preference shares Ordinary shares
Option A. ?44,000 ? 0
Option B. ?36,000 ? 8,000
Option C. ?32,000 ?12,000
Option D. ?24,000 ?20,000
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