At December 31, 2014, Black Company has the following: Common Stock, $10 par, 10,000 shares authorized, 9,000

Question:

At December 31, 2014, Black Company has the following:
Common Stock, $10 par, 10,000 shares authorized, 9,000 issued, 8,000 outstanding
Preferred Stock, $100 par, 8%, cumulative, 1,000 shares authorized, issued, and outstanding
The company did not pay any dividend during 2013 or 2012.

Required
Compute the amount of dividend to be received by the common and preferred stockholders in 2014 if the company declared a dividend of

(a) $16,000,

(b) $24,000,

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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