issues 5000 shares of 8% $100 par value preferred stock at the beginning of 2014 non-cumulative

Problem 2 Preferred stock dividends (24 points) 5,00-2%-(00-40,000 A. California Adventures issues 5,000 shares of 8%, $100 par value preferred stock at the beginning of 2014. All remaining shares are common stock. The company did the following as it relates to the payment of dividends Preferred dividends are Non-cumulative Year Amount paid0 Preferred shareso 2013 2014 60,000 2015 125.000 2016 75,000 40, 000 holders receive Common stock holders receive Dividends in arrearS B. California Adventures issues 7,000 shares of 8%, S 100 par value preferred stock at the beginning of 2014. All remaining shares are common stock. The company did the following as it relates to the payment of dividends Now assume the Preferred dividends are cumulative 2014 60,000 2015 85,000 2016 205,000 2013 Amount paid Preferred shares holders receive Common stock holders receive Dividends in arrears