When Custom Masks Inc. was organized in January 1, Year 1. It immediately issued 20,000...
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Accounting
When Custom Masks Inc. was organized in January 1, Year 1. It immediately issued 20,000 shares of $100 par, 5% cumulative preferred stock and 80,000 shares of $15 par common stock.
Custom Masks Inc. dividend history is as follows.
Year 1, no dividend
Year 2, no dividend
Year 3, $500,000 dividend declared.
How much is the dividend arrearage as of Jan 1, Year 2?
How will the Year 3 dividend be split between preferred and common stockholders?
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