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Outstanding Stock of the Core Corporation Included 20,000 Shares of $5

question 164

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Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par noncumulative preferred stock. In 2014, Core declared and paid dividends of $4,000. In 2015, Core declared and paid dividends of $12,000. How much of the 2015 dividend was distributed to preferred shareholders?

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Definitions:

Treating as Prospect

Treating as Prospect involves considering and engaging a potential customer with the intent of converting them into a client.

Unadvertised Function

A feature of a product or service that is not publicly promoted or made known to consumers.

Specified Date

A particular day that has been designated for a certain event, deadline, or action.

Manufacturer Discounts

Price reductions offered by manufacturers to distributors, retailers, or end-users, often to encourage bulk purchases or promote new products.

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