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Indigo Holding's accounting records show the following balances on December 3 1 , 2 0 2 2 : 1 3 % Preferred stock - $
Indigo Holding's accounting records show 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 Preferred stock is cumulative and fully participating.
b Preferred stock is cumulative and participating up to
c The preferred stock is noncumulative and is participating in distribution in excess of a dividend rate on the common stock.
Please show work for all three problems.
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