Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2018: Common Stock (par $1; outstanding, 400,000 shares) Preferred Stock, 9% (par $10; outstanding, 18,100 shares) Retained Earnings $ 400,000 181,000 957,000 On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017. Three independent cases are assumed: The preferred stock is noncumulative; the total amount of 2018 dividends would be $18,000. The preferred stock is cumulative; the total amount of 2018 dividends would be $15,000. Dividends were not in arrears prior to 2016. Same as Case B, except the amount is $58,000. Case A: Case B: Case C: Required: 1-a. Compute the amount of 2018 dividends, in total, that would be payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of 2018 dividends per share payable to each class of stockholders for each case.
Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2018: Common Stock (par $1; outstanding, 400,000 shares) Preferred Stock, 9% (par $10; outstanding, 18,100 shares) Retained Earnings $ 400,000 181,000 957,000 On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017. Three independent cases are assumed: The preferred stock is noncumulative; the total amount of 2018 dividends would be $18,000. The preferred stock is cumulative; the total amount of 2018 dividends would be $15,000. Dividends were not in arrears prior to 2016. Same as Case B, except the amount is $58,000. Case A: Case B: Case C: Required: 1-a. Compute the amount of 2018 dividends, in total, that would be payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of 2018 dividends per share payable to each class of stockholders for each case.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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Transcribed Image Text:Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2018:
Common Stock (par $1; outstanding, 400,000 shares)
Preferred Stock, 9% (par $10; outstanding, 18,100 shares)
Retained Earnings
$ 400,000
181,000
957,000
On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred
stockholders. No dividends were declared during 2016 or 2017. Three independent cases are assumed:
The preferred stock is noncumulative; the total amount of 2018 dividends
would be $18,000.
The preferred stock is cumulative; the total amount of 2018 dividends
would be $15,000. Dividends were not in arrears prior to 2016.
Same as Case B, except the amount is $58,000.
Case A:
Case B:
Case C:
Required:
1-a. Compute the amount of 2018 dividends, in total, that would be payable to each class of stockholders if dividends were declared as
described in each case.
1-b. Compute the amount of 2018 dividends per share payable to each class of stockholders for each case.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Compute the amount of 2018 dividends per share payable to each class of stockholders for each case. (Round your answers
to 2 decimal places.)
Case A
Case B
Case C
Preferred
Common
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