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b.
Dividends Payable
Cash
c.
Paid-in Capital
Dividends Payable
d.
Retained Earnings
Dividends Payable
17.
Allstate, Inc., has 10,000 shares of 6%, $100 par value,
cumulative preferred stock and 100,000 shares of $1 par value common
stock outstanding at December 31, 2007. If the board of directors
declares a $50,000 dividend, the
a.
preferred stockholders will receive 1/10th of what the
common stockholders will receive.
b.
preferred stockholders will receive the entire $50,000.