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  1. business
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  3. at the beginning of its first year, white sox corp

At the beginning of its first year, White Sox Corp. had the following capital structure:...

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Question

Accounting

At the beginning of its first year, White Sox Corp. had the following capital structure:

Preferred shares- 5,000 issued, 6% dividend $100,000

Common shares- 8,000 issued $400,000

$500,000

Dividends declared and paid were as follows in its first two years: Yr. 1- $5,000; Yr. 2- $41,000

Required:

Prepare a table showing the amount of dividends paid in Yr. 1 and Yr. 2 to each class of shareholder under the following assumptions:

  1. The preferred stock is noncumulative and non participating
  2. The preferred stock is cumulative and fully participating
  3. The preferred stock is cumulative and participating after the common shares receive 8% of their invested capital.

please show calculations

please show calculations

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