Answer:
$15,800
Explanation:
Preferred stockholders has an advantage that they are paid first when there is any dividend is announced. The residual dividend will be divided into the common stockholders. Any prior years due dividend and current years dividend associated with preferred share will be paid first.
Dividend on preferred shares = $430,000 x 7% = $30,100 per year
2019
Dividend Declared = $43,000
Dividend to common shareholders = $43,000 - $30,100 = $12,900
2020
Dividend Declared = $23,000
Residual Preferred Dividend = $30,100 - $23,000 = $7,100
It will be carried forward to next year and will be deducted form future dividend
2021
Dividend Declared = $53,000
Dividend to common shareholders = $53,000 - $30,100 -7,100 = $15,800
