Kingbird Company's ledger shows the following balances on December 31, 2025. $201,000 6% Preferred stock-$10 par...

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Kingbird Company's ledger shows the following balances on December 31, 2025. $201,000 6% Preferred stock-$10 par value, outstanding 20,100 shares Common stock-$100 par value, outstanding 31,700 shares Retained earnings 3,170,000 579,000 Assuming that the directors decide to declare total dividends in the amount of $399,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.) $ Preferred Common $ b. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) $ Preferred Common c. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.) Preferred $ $ Common Kingbird Company's ledger shows the following balances on December 31, 2025. $201,000 6% Preferred stock-$10 par value, outstanding 20,100 shares Common stock-$100 par value, outstanding 31,700 shares Retained earnings 3,170,000 579,000 Assuming that the directors decide to declare total dividends in the amount of $399,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.) $ Preferred Common $ b. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) $ Preferred Common c. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.) Preferred $ $ Common

Answer rating: 100% (QA)

a Preferred Stock is Cumulative and Fully Participating Cumulative means that if dividends are not paid in one year they accumulate and must be paid i... View the full answer