Jacklie Syndicate Began Operations on January 1,20X3 $\quad$ $\quad$

question 7

Multiple Choice

Jacklie Syndicate began operations on January 1,20X3.The company has the following items included in the stockholders' equity section of its balance sheet on December 31,20X3 and December 31,20X4.
8% Preferred Stock,$100 par,100,000 shares authorized,
25,000 shares issued and outstanding $\quad$ $\quad$ $\$ 2,500,000$
Common Stock,$3 par,500,000 shares authorized;
150,000 shares issued and outstanding $\quad$ $\quad$ $\quad$ $\quad$ $450,000$
Additional paid-in capital $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $2,250,000$
Total dividends declared and paid were
$\begin{array}{cl}\text { during } 20 \times 3 & \$ 170,000 \\\text { during } 20 \times 4 & 210,000 \\\text { during } 20 \times 5 & 240,000\end{array}$
If Jacklie Syndicate's preferred stock were noncumulative,how much of the 20X4 dividends would have been distributed to

• A)\(\begin{array}{ll}
• \underline{ \text { Preferred Stock} }& \underline{ \text { Common Stock }}\\
• \$ 110,526 &\$ 99,474 \\
• \end{array}\)
• B)\(\begin{array}{lccc}
• \underline{ \text { Preferred Stock } }& \underline{ \text { Common Stock }}\\
• \$ 100,962& \$109,038 \\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \underline{ \text { Preferred Stock } }& \underline{ \text { Common Stock }}\\
• \$ 2,000 & \$208,000 \\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \underline{ \text { Preferred Stock} } & \underline{ \text { Common Stock }}\\
• \$ 200,000 & \$ 10,000 \\
• \end{array}\)
• E) \(\begin{array}{lccc}
• \underline{ \text { Preferred Stock } }&\underline{ \text { Common Stock }}\\
• \$ 210,000 & \$0 \\
• \end{array}\)

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Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the total number of units produced.

Marginal Revenue

The added revenue procured by vending an additional unit of a good or service.

Business

An organized effort by individuals to produce and sell goods and services for profit.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity produced.