Sheffield, Inc., has 6500 shares of 6%, $100 par value, noncumulative preferred stock and 65000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $100500 dividend, the preferred stockholders will receive the entire $100500. preferred stockholders will receive 1/10th of what the common stockholders will receive. O preferred stockholders will receive $39000 and the common stockholders will receive $61500. $39000 will be held as restricted retained earnings and paid out at some future date.

Sheffield, Inc, has 6500 shares of 6%,$100 par value, noncumulative preferred stock and 65000 shares of $1 par value common stock outstanding at December 31,2020 . If the board of directors declares a $100500 dividend, the preferred stockholders will receive the entire $100500 preferred stockholders will receive 1/10th of what the common stockholders will receive. preferred stockholders will receive $39000 and the common stockholders will receive $61500. $39000 will be held as restricted retained earnings and paid out at some future date