Answer:
Common stock dividend = $77,000
Preferred dividend = $58,000
Explanation:
Given,
Common stock = 82,000 shares, $5 par value
Total common stock = 82,000 shares x $5 = $410,000
Preferred stock = 290,000 shares, $1 par value
Preferred stock = $290,000
Preferred dividend for the current year = $290,000 x 10% = $29,000
Since, the preferred dividend is cumulative, the company has to pay the previous year's preferred dividend too.
Therefore, Preferred dividend for the previous year = $29,000
Total preferred dividend for the two-year = $29,000 + $29,000 = $58,000
Total dividend = Preferred dividend + Common stock dividend
or, $135,000 = $58,000 + Common stock dividend
or, Common stock dividend = $135,000 - $58,000
Common stock dividend = $77,000
