Reference no: EM132420126

Problem: Kerry Company has 1,000 shares of $100 par value, 9% preferred stock and 10,000 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2013. Since 2013, Kerry has declared and paid dividends as follows:

2014 $ 0

2015 10,000

2016 20,000

2017 25,000

Required:

1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2015 to 2017. If an amount is zero, enter "0".

YearPreferred Dividends Common Dividends

2015 $ $

2016 $ $

2017 $ $

2. If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year?

YearPreferred Dividends Common Dividends

2015 $ $

2016 $ $

2017 $ $