(a) Bought 300 shares of common stock as treasury shares at $62
(b) Sold 80 shares of treasury stock at $60
(c) Sold four treasury shares at $68
(Points : 30)
Question 5. 5. (TCO F) In each of the following independent cases, it
is assumed that the corporation has $400,000 of 6% preferred stock
and $1,600,000 of common stock outstanding, each having a par
value of $10. No dividends have been declared for 2009 and 2010.
(a) As of 12/31/11, it is desired to distribute $250,000 in dividends.
How much will the preferred stockholders receive if their stock is
cumulative and nonparticipating?
(b) As of 12/31/11, it is desired to distribute $400,000 in dividends.
How much will the preferred stockholders receive if their stock is
cumulative and participating up to 11% in total?
(c) On 12/31/11, the preferred stockholders received a $120,000
dividend on their stock, which is cumulative and fully participating.
How much money was distributed in total for dividends during
2011? (Points : 30)