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Business, 02.12.2021 22:50 shiba8667

The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year: Common stock, $11 par value, 46,000 shares outstanding Preferred stock, 11 percent, $9 par value, 6,000 shares outstanding Retained earnings, $230,000 On September 1 of the current year, the board of directors was considering the distribution of an $75,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred stock is noncumulative. b. The preferred stock is cumulative.

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