The Shareholders' Equity of HS Corporation Includes $300,000 of $1

question 80

Essay

The shareholders' equity of HS Corporation includes $300,000 of $1 par common stock and $600,000 par of 6% cumulative preferred stock. The board of directors of HS declared cash dividends of $70,000 in 2018 after paying $30,000 cash dividends in 2017 and $50,000 in 2016.
Required:
What is the amount of dividends common shareholders will receive in 2018?

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Definitions:

Adipic Acid

An industrially significant dicarboxylic acid, used primarily in the production of nylon and other polymers.

Reagent

A substance or compound added to a system to cause a chemical reaction or test if a reaction occurs.

Transesterified

The process of exchanging the organic group R″ of an ester with the organic group R' of an alcohol.

Biodiesel

A renewable, biodegradable fuel made from vegetable oils or animal fats through a process called transesterification.