Dividend applicable to preferred and common stockholders

Assignment Help Financial Accounting
Reference no: EM13863742

Gibraltar Corporation has 200,000 shares of 9%, $50 par value cumulative preferred stock authorized, 80,000 shares issued, and 75,000 outstanding, as well as 300,000 shares of $10 par value common stock issued and outstanding. Dividends relative to the preferred stock are two years in arrears. If Gibraltar declares a $2,137,500 dividend during the current period, the amount of the dividend applicable to the preferred and common stockholders is:

A) $675,000 and $1,462,500, respectively

B) $1,012,500 and $1,125,000, respectively

C) $1,350,000 and $787,500, respectively

D) $2,025,000 and $112,500, respectively

Reference no: EM13863742

Questions Cloud

Essay on leadership across chinese culture : "Leadership across Chinese culture". Just for about 1-2 pages including work cited. APA reference
Despite the voluminous nature of the tax code : Despite the voluminous nature of the tax code, there are still questionable areas relating to deductibility of expenses and losses as well as claiming of tax credits. The FASB accounting standards codification indicates when the uncertain tax benefit..
Accrue interest on long-term debt in governmental funds : Governments are not required to accrue interest on long-term debt in governmental funds even if the interest is applicable to a current period and will be due the first day of the following year. Explain and justify the standards that permit this pra..
Calculate net sales-gross profit-income before taxes : During the year, cost of goods sold was $40,000; income from operations was $38,000; income tax expense was $8,000; interest expense was $6,000; and selling, general, and administrative expenses were $22,000. Required: Calculate net sales, gross prof..
Dividend applicable to preferred and common stockholders : Gibraltar Corporation has 200,000 shares of 9%, $50 par value cumulative preferred stock authorized, 80,000 shares issued, and 75,000 outstanding, as well as 300,000 shares of $10 par value common stock issued and outstanding. Dividends relative to t..
Calculate total stockholders equity at end of year : Understanding financial statement relationships Total assets were $48,000 and total liabilities were $27,000 at the beginning of the year. Net income for the year was $8,000, and dividends of $2,000 were declared and paid during the year. Required: C..
Prepare brief memorandum that responds : You are the financial officer for Music Plus, a retailer that sells goods for home entertainment needs. The business owner, Vic Velakturi, recently reviewed the annual financial statements you prepared and sent you an e-mail stating that he thinks yo..
Meet the objectives of governments and taxpayers : Gift and estate taxes are, in effect, a delayed surtax on income and wealth accumulation. How can the current systems be improved to meet the objectives of governments and taxpayers?
Calculate the effect of these events and transactions : At a company, events and transactions during 2014 included the following. The tax rate for all items is 30%. Calculate the effect of these events and transactions on 2014 income from continuing operations net of tax. Display your work in detail.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Illustrate the difference in various depreciation methods

You are the new Financial Controller of Advanced Radio repairs. Write a memo to the company Chairperson identifying the internal Control weakness in this situation. State the steps to be taken to correct the weakness.

  Prepare the adjusting entries for the month of march

The ledger of Hammond, Inc. on March 31, 2010, includes the following selected accounts before adjusting entries.

  What are consolidators goods available for sale

For the month of January, Consolidated Engine Parts, Inc, had the following financial information: merchandise inventory, January 1, $322,000; merchandise inventory, January 31,$316,400; gross purchases,$243,460; purchase returns and allowances,$26,8..

  Passive loss deduction and passive loss suspended

Freda acquired a passive activity this year for $870,000. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were $122,000. Regular income tax depreciation of $49,750 was computed under MACRS. A..

  Create a provision for doubtful debts

Machinery worth Rs 22,500 purchased on Oct 1, 2008 was shown as purchases. Freight paid on the machinery was Rs 2,500, which was included in freight on purchases - Create a provision for doubtful debts at 5% on debtors

  What is the depreciation expense for 2010

What is the depreciation expense for 2010 using the company's existing method and what is the depreciation expense for 2010 if Mary incorporates her changes to how depreciation expense is calculated?

  Determine the amounts of the missing items

Determine the amounts of the missing items, identifying them by letter. (Suggestion: First determine the amount of increase or decrease in stockholders' equity during theyear.)

  Compute the amount of interest

Compute the amount of interest during 2012, 2013, and 2014 for the following note receivable: On May 31, 2012, TMRN Bank lent $220,000 to Bob Morrison on a two-year, 8% note.

  Explain how much price should be increased

Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so? If he does, what general guide can you suggest as to explain how much price should be increased?

  Evaluate the profitability using the ratios

Critically evaluate short term liquidity using the ratios - Critically evaluate the profitability using the ratios

  Determine the present value of the debt

Borrowed $100,000 for six years. Interest payments of $6,200 will be due at the end of each year and the $100,000 will be repaid at the end of the sixth year.

  How much is the contribution margin for the year

The Shoe division of Garrison Company has the following annual data. How much is the contribution margin for the year?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd