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    Distribution of Dividends between Preferred and Common stock

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    Harris Company has 1,000 shares of $200 par value, 6, percent cumulative preferred stock outstanding and 5,000 shares of $40 par value common stock. In 2004, 2005, and 2006, Harris Company declared dividends of $10,000, $8,000 and $40,000, respectively. Determine the distribution of dividends between preferred stock and common stock for each of the three years.

    Preferred Common Total
    2004 $__________ __________ ____________
    2005 $__________ __________ ____________
    2006 $__________ __________ ____________

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    Solution Preview

    Cumulative Preferred Stock is a type of preferred stock which have a provision that if any dividends have been omitted in the past, they must be paid out to preferred shareholders first, before common shareholders can ...

    Solution Summary

    The solution computes dividend distribution for Harris Company.