E12-11 The stockholders’ equity section of Lumley Corporation at December 31 is as follows.

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E12-11 The stockholders’ equity section of Lumley Corporation at December 31 is as follows.


LUMLEY CORPORATION
Balance Sheet (partial)
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued
and outstanding $ 600,000
Common stock, no par, 750,000 shares authorized, 600,000 shares issued 1,200,000
Total paid-in capital 1,800,000
Retained earnings 1,858,000
Total paid-in capital and retained earnings 3,658,000
Less:Treasury stock (12,000 common shares) (64,000)
Total stockholders’ equity $3,594,000

Instructions
(a) How many shares of common stock are outstanding?
(b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $30,000, what is the dividend rate on preferred
stock?

(e) If dividends of $60,000 were in arrears on preferred stock, what would be the balance in

Retained Earnings?