Question
Common Stock ($1 par value; 20,000,000 shares authorized; 4,000,000 shares issued and outstanding) $4,000,000 7% Preferred stock ($30 par value; 1,000,000 shares authorized; 400,000 shares
Common Stock ($1 par value; 20,000,000 shares authorized; 4,000,000 shares issued and outstanding) | $4,000,000 |
7% Preferred stock ($30 par value; 1,000,000 shares authorized; 400,000 shares issued and outstanding) | 12,000,000 |
Additional paid-in capital on common stock | 17,000,000 |
Retained earnings | 35,000,000 |
Total Stockholders Equity | $68,000,000 |
Simpson declares dividends on common and preferred stock annually. On 12/23/2020, Simpson declares the annual dividend of $1,500,000 to shareholders of record on 12/31/2020, to be paid 1/5/2021.
Required: Determine the total amount of the dividend that is allocated to common and preferred shareholders. You must show your work.
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