Question
Sage Companys ledger shows the following balances on December 31, 2020. 4% Preferred Stock$10 par value, outstanding 18,200 shares $ 182,000 Common Stock$100 par value,
Sage Companys ledger shows the following balances on December 31, 2020.
4% Preferred Stock$10 par value, outstanding 18,200 shares $ 182,000
Common Stock$100 par value, outstanding 32,400 shares 3,240,000
Retained Earnings 684,000 Assuming that the directors decide to declare total dividends in the amount of $333,000, determine how much each class of stock should receive under each of the conditions stated below. One years dividends are in arrears on the preferred stock.
(a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)
Preferred _______ Common _______
**Please show step by step how you get the final answer, I have been very stuck on this part of the question and need some help. Thank you.*
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