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Ne4ueva [31]
3 years ago
13

Liberty, inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock o

utstanding at december 31, 2014, and december 31, 2015. the board of directors declared and paid a $3,000 dividend in 2014. in 2015, $18,000 of dividends are declared and paid. what are the dividends received by the preferred and common shareholders in 2015?
a. preferred: $5,000 common: $13,000
b. preferred: $7,000 common: $11,000
c. preferred: $11,000 common: $7,000
d. preferred: $9,000 common: $9,000
Business
1 answer:
BabaBlast [244]3 years ago
8 0

Dividend to be paid to Preference shareholders in 2014= No of Preference shares*par value per share*Percentage of Shares

=2500*50*4%

=$5000

Dividends declared duing 2014=$3000, Thus Preference share holders need to be paid $2000 , in 2015, as preference shares are cumulative in nature.

Dividend to pe paid to Preference shareholders in 2015= $5000+$2000

=$7000.

Dividend to be paid to common share holders= $18000-$7000

=$11000

Thus B will be the answer.

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Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000
yarga [219]

Answer:

An increase in sale for 90 units, will increase the net income for 1$,170

Explanation:

<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>

So we simply multiply the contribution per unit by the increase in sale.

Contribution Margin  x Δ sales = Δ income

13 x 90 = 1,170

Each unit contributes with 13 additional income, there are 90 additional units

Total income added 1,170

8 0
3 years ago
A new truck is purchased on January 1, 20X6. The truck cost $10,000, has a 5-year life, and a $2,000 residual value. Given a Dec
Elena-2011 [213]

Answer:

20X9 depreciation expense is $160

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20%.

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

In 20X6, depreciation expense = 40% x $10,000 = $4,000

At the beginning of the year 20X7, the truck cost's book value is $10,000-$4,000 = $6,000

In 20X7, depreciation expense = 40% x $6,000 = $2,400

In 20X8, depreciation expense = 40% x ($10,000 - $4,000 - $2,400) = $1,440

Accumulated depreciation at December 31 20X8 = $4,000 + $2,400 + $1,440 = $7,840

Book value at December 31 20X8 = $10,000 - $4,000 - $2,400 - $1,440 = $2,160

In 20X9, depreciation expense = $10,000 - $2,000 - $7,840 = $160

The 20X9 depreciation expense was $160 which is less than the actual $864 (40% of $2,160). It was done to keep the residual value as estimated ($2,000)

4 0
3 years ago
Trusted wholesalers is a company that purchases products produced in mexico and sells them to companies based in the united stat
DENIUS [597]
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<span>In 1994, the North American Free Trade Agreement (NAFTA) became effective, making one of the world's biggest facilitated commerce zones and establishing the frameworks for solid financial development and rising flourishing for Canada, the United States, and Mexico.</span>
7 0
2 years ago
Lawn maintenance is an alternative energy source career.<br> A. <br> True<br> B. <br> False
Rainbow [258]

Answer:

False

Explanation:

Lawn maintenance isn't

4 0
3 years ago
The primary participants in a market are A. firms who supply the product and consumers who buy​ it, but government policies such
MrRa [10]

Answer:

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