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Xtreme Sports has $200,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $600,000 of common stock outstanding. In the company's first year
Xtreme Sports has $200,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $600,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $40,000. This dividend should be distributed as follows:
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