The Mailer Corporation Had the Following Classes of Stock Outstanding

question 86

Multiple Choice

The Mailer Corporation had the following classes of stock outstanding as of December 31,2014: Common stock,$20 par value,20,000 shares outstanding
Preferred stock,6 percent,$100 par value,cumulative,2,000 shares outstanding
No dividends were paid on preferred stock for 2012 and 2013.On December 31,2014,a total cash dividend of $200,000 was declared.What are the amounts of dividends payable on both the common and preferred stock,respectively?

• A) $0 and $200,000
• B) $164,000 and $36,000
• C) $176,000 and $24,000
• D) $188,000 and $12,000

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Definitions:

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if they can, necessitating control and coercion by management.

Theory Y

A management approach that suggests employees are intrinsically motivated, enjoy their job duties, and work to better themselves without direct supervision.

Work Motivation

The intrinsic and extrinsic factors that energize, direct, and sustain an individual's work behavior and performance.

Anorexia Nervosa

An eating disorder characterized by a low weight, fear of gaining weight, and a strong desire to be thin, leading to food restriction.