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Ahlia Corporation was organized on January 1, 2009

Accounting

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Ahlia Corporation was organized on January 1, 2009. During its first year, the corporation issued 80,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends:

2009 $ 16,000

2010 $60,000

2011 $140,000

Instructions:

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and not cumulative.

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative.