Kinney Co. began business on April 1, 2010. On April 1^st the company issued 18,000 shares of $50 par value, 8% cumulative preferred stock and 100,000 shares of $10 par value common stock.

Assume that Kinney Co. declared and paid cash dividends of $80,000 in 2010, $0 in 2011, and $350,000 in 2012. Compute the total cash dividends paid to each class of stock in 2010, 2011, 2012.

2010 2011 2012

Preferred Stock

Common Stock

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Total dividends paid $80,000 $0 $350,000

b. Assume that Kinney declared and paid cash dividends of $0 in 2010, $140,000 in 2011 and $180,000 in 2012. Compute the total cash dividends paid to each class of stock in 2010, 2011 and 2012.

2010 2011 2012

Preferred Stock

Common Stock

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Total dividends paid $0 $140,000 $180,000