Saturn Corporation Has 10,000 Shares of 10%, $75 Par Noncumulative

question 22

Multiple Choice

Saturn Corporation has 10,000 shares of 10%, $75 par noncumulative preferred stock outstanding and 20,000 shares of no-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $180,000. How is the dividend allocated between preferred and common stockholders?

• A)The dividend is allocated $5,000 to preferred shareholders and $115,000 to common shareholders.
• B)The dividend is allocated $75,000 to preferred shareholders and $105,000 to common shareholders.
• C)The dividend is allocated $60,000 to preferred shareholders and $120,000 to common shareholders.
• D)The dividend is allocated $72,000 to preferred shareholders and $108,000 to common shareholders.

---

Definitions:

Subcutaneous Plaques

Fibrous or hard patches that form under the skin, often associated with various dermatological conditions.

Testes

Male reproductive glands responsible for producing sperm and sex hormones, primarily testosterone.

Scrotal Area

The anatomical region encompassing and surrounding the scrotum, which houses the testicles and related structures.

Scrotal Color

The coloration of the skin of the scrotum, which can vary and may indicate certain medical conditions.