Dividend Distribution

Gardner Corporation began business on June 30 Year 1. At that time, it issued 18,000 shares of $50 par value, six percent, cumulative preferred stock and 90,000 shares of $10 par value common stock. Through the end of Year 3, there had been no change in the number of preferred and common shares outstanding.

Required

a. Assume that Gardner declared dividends of $50,000 in Year 1, $0 in Year 2, and $408,000 in Year 3. Calculate the total dividends and the dividends per share paid to each class of stock in Year 1, Year 2, and Year 3. Round to two decimal places.

Year	Preferred Stock	Common Stock	Preferred per share	Common per share
Year 1	Answer	Answer	Answer	Answer
Year 2	Answer	Answer	Answer	Answer
Year 3	Answer	Answer	Answer	Answer

b. Assume that Gardner declared dividends of $0 in Year 1, $110,000 in Year 2, and $198,000 in Year 3. Calculate the total dividends and the dividends per share paid to each class of stock in Year 1, Year 2, and Year 3. Round to two decimal places.

Year	Preferred Stock	Common Stock	Preferred per share	Common per share
Year 1	Answer	Answer	Answer	Answer
Year 2	Answer	Answer	Answer	Answer
Year 3	Answer	Answer	Answer	Answer

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