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M. Sunland Corporation has 20,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Sunland wants to pay $500,000 of dividends in 2020, what amount of dividends will common stockholders receive? Amount of dividend 41 On October 31, the stockholders' equity section of Cullumber Company consists of common stock $315,000 and retained earnings $893,000. Cullumber is considering the following two courses of action: (1) declaring a 6% stock dividend on the 31,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital Common stock 315000 315000 In excess of par 0 Total paid-in capital 315000 315000 Retained earnings 893000 893000 X Total stockholders' equity 1523000 1523000 Outstanding shares 31500 Par value per share 10 10