Question 3 During 2020, Sanders Corporation prepared the following journal entry to record the declaration and payment of a cash dividend: Retained earnings (for common stock dividend) Retained earnings (for preferred stock dividend) Dividends payable, common stock

Dividends payable, preferred stock 10.000 3,600 10,000 3.600 The total par values of common and preferred stock issued were $55,000 and $40,000, respectively. No dividends were declared or paid during 2019. There are 7,500 shares of common stock held in treasury. The common stock has a par value of $2 per share. A. If the preferred stock is noncumulative, calculate the dividend rate on the preferred stock. B. Calculate the dividend paid per share of common stock.

During 2020, Sanders Corporation prepared the following journal cntry to record the declaration and payment of a cash dividend: The total par values of common and preferred stock issued were $55,000 and $40,000, respectively. No dividends were declared or paid during 2019. There are 7.500 shares of common stock held in treasury. The common stock has a par value of $2 per share. A. If the preferred stock is noncumulative, calculate the dividend rate on the preferred stock. B. Calculate the dividend paid per share of common stock