*E15-21B (Preferred Dividends) The outstanding capital stock of York Brands Corporation consists of 10,000 shares of $75 par value, 10% preferred, and 25,000 shares of $1 par value common. Instructions Assuming that the company has net income of $250,000,

*E15-21B (Preferred Dividends) The outstanding capital stock of York Brands Corporation consists of 10,000 shares of $75 par value, 10% preferred, and 25,000 shares of $1 par value common.

Instructions

Assuming that the company has net income of $250,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the current year or the past year, state how much each class of stock should receive under each of the following conditions.

(a) The preferred stock is noncumulative and fully participating.

(b) The preferred stock is cumulative and nonparticipating.

(c) The preferred stock is cumulative and fully participating.