(Preferred Dividends) Matt Schmidt Company’s ledger shows the following balances on December 31, 2007.

Instructions Assuming that the directors decide to declare total dividends in the amount of $366,000, 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.

(b) The preferrred stock is noncumulative and nonparticipating.

(c) The preferred stock is noncumulative and is participating in distributions in excess of a 10% dividend rate on the common stock.

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7% Preferred stock-$10 par value, outstanding 20,000 shares Common stock $100 par value, outstanding 30,000 shares Retained earnings $ 200,000 3,000,000 630,000