Swifty Corporation has 2,000 shares of 10%, $130 par value preferred stock outstanding at December 31,...

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Accounting

Swifty Corporation has 2,000 shares of 10%, $130 par valuepreferred stock outstanding at December 31, 2020. At December 31,2020, the company declared a $140,000 cash dividend. Determine thedividend paid to preferred stockholders and common stockholdersunder each of the following scenarios.
1. The preferred stock is noncumulative, and the company has notmissed any dividends in previous years.
The dividend paid to preferred stockholders $
The dividend paid to common stockholders $
2. The preferred stock is noncumulative, and the company did notpay a dividend in each of the two previous years.
The dividend paid to preferred stockholders $
The dividend paid to common stockholders $
3. The preferred stock is cumulative, and the company did notpay a dividend in each of the two previous years.
The dividend paid to preferred stockholders $
The dividend paid to common stockholders $

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3.8 Ratings (636 Votes)

Solution 1 The preferred stock is noncumulative and the company has not missed any dividends in previous years The dividend paid to preferred stockholders 26000 The dividend paid to common stockholders 114000 2 The preferred stock is See Answer

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