Southern Food Corporation has outstanding 50,000 shares of noncumulative, 7 percent, $100 parvalue preferred stock and 100,000

Question:

Southern Food Corporation has outstanding 50,000 shares of noncumulative, 7 percent, $100 parvalue preferred stock and 100,000 shares of no-par-value common stock.
1. During 2019, the corporation distributed dividends of $350,000. What amount will be paid on each share of preferred stock? What amount will be paid on each share of common stock?
2. During 2020, the corporation distributed dividends of $850,000. How much will be paid on each share of preferred stock? How much will be paid on each share of common stock?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...