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Bonita Company's ledger shows the following balances on December 3 1 , 2 0 2 5 . 4 % Preferred stock - $ 1 0
Bonita Company's ledger shows the following balances on December
Preferred stock $ par value, outstanding shares $
Common stock $ par value, outstanding shares
Retained earnings
Assuming that the directors decide to declare total dividends in the amount of $ 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. Round the rate of participation to decimal places, eg Round
answers to decimal places, eg
b The preferred stock is noncumulative and nonparticipating. Round answers to decimal places, eg
c The preferred stock is noncumulative and is participating in distributions in excess of a dividend rate on the common stock.
Round the rate of participation to decimal places, eg Round answers to decimal places, eg
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