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Dividends Keener Company has had 900 shares of 7%, $100 par preferred stock and 42,000...

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Question

Accounting

Dividends

Keener Company has had 900 shares of 7%, $100 par preferred stock and 42,000 shares of $5 stated value common stock outstanding for the last 3 years. During that period, dividends paid totaled $5,300, $25,300, and $31,800 for each year, respectively.

Required:

Compute the amount of dividends that Keener must have paid to preferred shareholders and common shareholders in each of the 3 years, given the following 3 independent assumptions:

1. Preferred stock is nonparticipating and noncumulative.

Schedule of dividends
preferred common total
year 1 5300 0 5300
year 2 6300 19000 25300
year 3 6300 25500 31800

2. Preferred stock is nonparticipating and cumulative.

Schedule of dividends
preferred common total
year 1 5300 0 5300
year 2 7300 18000 25300
year 3 6300 25500 31800

3. Preferred stock is fully participating and cumulative.

Schedule of dividends
preferred common total
year 1 5300 0 5300
year 2 X X 25300
year 3 X X 31800

I need help finding the Xs.

please show how you got your answer. Thank you!

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