Homework Answers
| Answer | ||
| Particulars | Amounts | Working / Explanations |
| a. Preferred stockholders | $18,00,000 | Preferred stockholders will be paid off fully in priority on common Stockholder. |
| b. Common stockholders | $ 2,00,000 | Balance available for common stockholder (2000000-1800000) |
| C. Total Distribution | $ 20,00,000 | |
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Allocating Liquidation Between Common Stockholders and Preferred Stockholders The Arcadia Company is liquidating. After paying off...
Allocating Liquidation Between Common Stockholders and Preferred Stockholders The Arcadia Company is liquidating. After paying off...
Allocating Liquidation Between Common Stockholders and Preferred Stockholders The Arcadia Company is liquidating. After paying off all of its creditors, the company has $1.2 million to distribute between its preferred stockholders and its common stockholders. The aggregate par value of the preferred stock is $1.08 million and the aggregate par value of its common stock is $2.4 million. How much of the remaining $1.2 million assets should be distributed to the preferred stockholders and how much should be distributed to...
The Azuza Company is liquidating. After paying off all of its creditors, the company has $1.5...
The Azuza Company is liquidating. After paying off all of its creditors, the company has $1.5 million to distribute between its preferred stockholders and its common stockholders. The aggregate par value of the preferred stock is $900,000 and the aggregate par value of its common stock is $2 million. How much of the remaining $1.5 million in assets should be distributed to the preferred stockholders and how much should be distributed to the common stockholders? Preferred stockholders $Answer Common stockholders...
Can i get help solving allocating the cash dividend b/w preferred and common stockholders? A corporation...
Can i get help solving allocating the cash dividend b/w
preferred and common stockholders?
A corporation had the following outstanding stock when the company's board of directors declared a $175,000 cash dividend during the current year: Preferred stock. $75 par, 9%, 5,000 shares issued and outstanding Common stock, $20 par, 75,000 shares issued and outstanding Total 375.000 1,500,000 1.875,000 Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and the dividends...
Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating...
Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation (Depreciation) Cash $ 365,250 $ 365,250 Building 70,250 27,500 42,750 Land 295,000 372,500 (77,500 ) Total $ 730,500 $ 765,250 $ (34,750 ) Under the terms of the agreement, Tiffany will receive the $365,250 cash in exchange for her 50 percent interest in...
Nathan's Athletic Apparel has 1,800 shares of 7%, $100 par value preferred stock the company issued...
Nathan's Athletic Apparel has 1,800 shares of 7%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $27,000 in 2021 Required: 1. & 2. How much of the $27,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021, assuming the preferred stock is cumulative? What...
Nathan's Athletic Apparel has 1,700 shares of 5% , $100 par value preferred stock the company...
Nathan's Athletic Apparel has 1,700 shares of 5% , $100 par value preferred stock the company issued at the beginning of 2017 All remaining shares are common stock The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Required: 1. & 2. Ansuming the preferred stock is cumulative and noncumulative, how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders...
Exercise 10-4B Determine the amount of preferred stock dividends (LO10-3) A company has 1,200 shares of...
Exercise 10-4B Determine the amount of preferred stock dividends (LO10-3) A company has 1,200 shares of 7 % , $100 par value preferred stock the company issued at the beginning of Year 1. All remaining shares are common stock. The company was not able to pay dividends in Year 1, but plans to pay dividends of $18,000 in Year 2 Required: 1. & 2. How much of the $18,000 dividend will be paid to preferred stockholders and how much will...
Stockholders' equity of Ernst Company consists of 80,000 shares of $5 par value, 10% cumulative preferred...
Stockholders' equity of Ernst Company consists of 80,000 shares of $5 par value, 10% cumulative preferred stock and 280.000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $125,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company Par Value per Preferred Share Dividend...
Stockholders' equity of Ernst Company consists of 78,000 shares of $5 par value, 10% cumulative preferred...
Stockholders' equity of Ernst Company consists of 78,000 shares of $5 par value, 10% cumulative preferred stock and 270,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $115,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Par Value per Preferred Share Dividend...
Nathan's Athletic Apparel has 2,000 shares of 6%, $100 par value preferred stock the company issued...
Nathan's Athletic Apparel has 2,000 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $25,000 in 2018. Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in...
Can i get help solving allocating the cash dividend b/w
preferred and common stockholders?
A corporation had the following outstanding stock when the company's board of directors declared a $175,000 cash dividend during the current year: Preferred stock. $75 par, 9%, 5,000 shares issued and outstanding Common stock, $20 par, 75,000 shares issued and outstanding Total 375.000 1,500,000 1.875,000 Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and the dividends...
Nathan's Athletic Apparel has 1,800 shares of 7%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $27,000 in 2021 Required: 1. & 2. How much of the $27,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021, assuming the preferred stock is cumulative? What...
Nathan's Athletic Apparel has 1,700 shares of 5% , $100 par value preferred stock the company issued at the beginning of 2017 All remaining shares are common stock The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Required: 1. & 2. Ansuming the preferred stock is cumulative and noncumulative, how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders...
Exercise 10-4B Determine the amount of preferred stock dividends (LO10-3) A company has 1,200 shares of 7 % , $100 par value preferred stock the company issued at the beginning of Year 1. All remaining shares are common stock. The company was not able to pay dividends in Year 1, but plans to pay dividends of $18,000 in Year 2 Required: 1. & 2. How much of the $18,000 dividend will be paid to preferred stockholders and how much will...
Stockholders' equity of Ernst Company consists of 80,000 shares of $5 par value, 10% cumulative preferred stock and 280.000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $125,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company Par Value per Preferred Share Dividend...
Stockholders' equity of Ernst Company consists of 78,000 shares of $5 par value, 10% cumulative preferred stock and 270,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $115,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Par Value per Preferred Share Dividend...
Nathan's Athletic Apparel has 2,000 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $25,000 in 2018. Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $25,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in...
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