Save cc Homework: Chapter 15 Homework - Score: 0 of 10 pts 9 of 11 (1 complete) me E15-15 (similar to) HW Score: 9.09%, 10 of 110 pts Question Help aide Decor Inc. issued $24 million of $4 par preferred stock on February 1, 2018. The company issued 1 million shares. The preferred stock has a 2% fixed annual cash dividend and no maturity date. Assume that the holder of the preferred shares has the option to require redemption. alts to Requirements a. How would Decor account for the preferred stock dividends? b. What is the journal entry when the firm issued the preferred shares? Requirement a. How would Decor account for the preferred stock dividends? If Decor were a US GAAP reporter then ext O O O O A. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at its nominal value B. the entire proceeds would be classified as liability. Dividends are a reduction of equity C. the entire proceeds would be classified as equity Dividends are a reduction of equity- D. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at the resent value of an annuity udy Cre Click to select your answer and then click Check Answer Save cc Homework: Chapter 15 Homework - Score: 0 of 10 pts 9 of 11 (1 complete) me E15-15 (similar to) HW Score: 9.09%, 10 of 110 pts Question Help aide Decor Inc. issued $24 million of $4 par preferred stock on February 1, 2018. The company issued 1 million shares. The preferred stock has a 2% fixed annual cash dividend and no maturity date. Assume that the holder of the preferred shares has the option to require redemption. alts to Requirements a. How would Decor account for the preferred stock dividends? b. What is the journal entry when the firm issued the preferred shares? Requirement a. How would Decor account for the preferred stock dividends? If Decor were a US GAAP reporter then ext O O O O A. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at its nominal value B. the entire proceeds would be classified as liability. Dividends are a reduction of equity C. the entire proceeds would be classified as equity Dividends are a reduction of equity- D. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at the resent value of an annuity udy Cre Click to select your answer and then click Check