Atlantis Corporation Has 12,000 Shares of 14%,$78 Par Noncumulative Preferred

question 183

Multiple Choice

Atlantis Corporation has 12,000 shares of 14%,$78 par noncumulative preferred stock outstanding and 29,000 shares of no-par common stock outstanding.At the end of the current year,the corporation declares a dividend of $188,000.How is the dividend allocated between preferred and common stockholders?

• A) The dividend is allocated $6023 to preferred stockholders and $132,976 to common stockholders.
• B) The dividend is allocated $131,040 to preferred stockholders and $56,960 to common stockholders.
• C) The dividend is allocated $55,024 to preferred stockholders and $132,976 to common stockholders.
• D) The dividend is allocated $316,680 to preferred stockholders and $128,680 to common stockholders.

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Definitions:

Statement of Financial Position

A financial statement that presents the assets, liabilities, and equity of an entity at a specific date, offering a snapshot of its financial health.

Chart of Accounts

A systematic listing of all accounts used by an organization, making up its general ledger and helping categorize transactions.

Account Numbers

Unique identifiers assigned to individual accounts within a financial recording system to differentiate and track financial transactions.