Determine amount of dividend to be distributed to each class

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Reference no: EM131977149

Problem

Solar Storm Inc. began operations on June 30, 2014, and issued 60,000 shares of $1 per common stock on that date. On December 31, 2014, Solar Storm declared and paid $24,200 in dividends. After a vote of the board of directors, Solar Storm issued 25,000 shares of 7% cumulative, $10 par, preferred stock on January 1, 2016. On December 31, 2016, Solar Storm declared and paid $16,500 in dividends, and on December 31, 2017, Solar Storm declared and paid $41,300 in dividends. Determine the amount of dividends to be distributed to each class of stock for each of Solar Storm's dividend payments.

Reference no: EM131977149

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