On January 1, 2020, Warhol Company issued 3000 shares of 10%, $200 par value, cumulative preferred stock for $700,000. No preferred dividends were declared in 2020 and 2021. On December 30, 2022, the Board declared $3000 in dividends. How much of the dividend is allocated to preferred and common shareholders? Group of answer choices $3000 preferred, $0 common $0 preferred, $3000 common $1200 preferred, $1800 common $1500 preferred, $1500 common

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Warhol Company issued 3000 shares of 10%, $200 par value, cumulative preferred stock for $700,000. No preferred dividends were declared in 2020 and 2021. On December 30, 2022, the Board declared $3000 in dividends. How much of the dividend is allocated to preferred and common shareholders?
Group of answer choices
$3000 preferred, $0 common
$0 preferred, $3000 common
$1200 preferred, $1800 common
$1500 preferred, $1500 common
 
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