Reference no: EM132629980

Question - Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued 40,000 shares of $50 par value preferred stock and 300,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends:

December 2016 $90,000

December 2017 130,000

December 2018 190,000

Required -

1. Show the allocation of dividends to each class of stock, assuming that the preferred stock is 8% and not cumulative.

2. Show the allocation of dividends to each class of stock, assuming that the preferred stock is 9% and cumulative.