Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 108,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2016, $5,300; 2017, $13,700; and 2018, $27,000.

Exercise 14-2 (Part Level Submission) Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 108,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2016, $5,300; 2017, $13,700; and 2018, $27,000. (a) Your answer is correct. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative. 2016 2017 2018 Allocation to preferred stock 5,300 6,000 A Allocation to common stock 21000 to SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 1 of 3 used (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative. 2016 2017 2018 Allocation to preferred stock + A $ $ Allocation to common stock $