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Question(s) / Instruction(s):

*Pr. 15-131—Dividends on preferred and common stock.
Spencer, Inc., has $800,000 of 8% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2006 and 2007. As of December 31, 2008, it is desired to distribute $488,000 in dividends.

Instructions
How much will the preferred and common stockholders receive under each of the following assumptions:
(a)     The preferred is noncumulative and nonparticipating.
(b)     The preferred is cumulative and nonparticipating.
(c)     The preferred is cumulative and fully participating.
(d)     The preferred is cumulative and participating to 12% total.

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