Calgate Company had the following shares outstanding

and retained earnings #1057

Calgate Company had the following shares outstanding and retained earnings at December 31,
2014:Preferred shares, 4% (par value $ 25; outstanding, 10,000 shares) ...$ 250,000Common
shares (outstanding, 30,000 shares) ...........600,000Retained earnings
........................281,000The board of directors is considering the distribution of a cash dividend
to the two groups of shareholders. No dividends were declared during 2012 or 2013. Three
independent cases are assumed: Case A: The preferred shares are non- cumulative; the total
amount of dividends is $ 51,000. Case B: The preferred shares are cumulative; the total amount
of dividends is $ 60,000. Case C: Same as case B, except the amount is $ 96,000. Required: 1.
Compute the amount of dividends, in total and per share, that would be payable to each class of
shareholders for each case. Show computations. 2. Assume that the company issued a 10
percent common stock dividend on the outstanding common shares when the market value per
share was $ 24. Complete the following comparative schedule for common shares only,
including explanation of the differences.
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Calgate Company had the following shares outstanding and retained earnings

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