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Award: 2 out of 2.00 points When Higdon Corporation was organized in January.r 2014, it immediately issued 5,200 shares of $40 pa percent, cumulative preferred
Award: 2 out of 2.00 points When Higdon Corporation was organized in January.r 2014, it immediately issued 5,200 shares of $40 pa percent, cumulative preferred stock and 11,500 shares of $12 par common stock. The company's eamir history is as follows: 2014, net loss of $12,500; 2015, net income of $82,400; 2018, net income of $110,: The corporation did not pay a dividend in 2014. Required a. How much is the dividend arrearage as of Januaryr 1, 2015? {Do not round intermediate calculations.) $ 17-33'5 \" arrearae 4 F b. Assume that the board of directors declares a $48,072 cash dividend at the end of 2015 {remember1 the 2014 and 2015 preferred dividends are due}. Hov.r will the dividend be divided between the prefm and common stockholders? [Do not round intermediate calculations. Amounts to be deducted should be indicated with minus sign.) Distributed to Shareholders Preferred Common Total dividend declared $ 48,6?2 2014Arrearage (1?,836) J $ 17,830 ~/ 2015 Preferred dividends (1?,836) v' 17,830 ~/ Available for common shares 13,000 v' Distributed to common stockholders (13.300) v
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