Answers
Question 14)
Answer:- E) None of these
Explanation:
A) Preferred stockholders do not have any voting rights.
B) Preferred Stock does not participate in earnings. Preferred dividends are paid out of the net income after tax and before deciding any dividend to common stockholders.
C) The preferred stockholders gets regular dividends and not interest.
D) Preferred stock are not used to avoid double taxation. Like the common stockholders, the preferred stockholders are also liable to dividend tax on their dividend income. However preferred stock dividend are taxed at a lower rate than the normal income (other than the investors who belong to higher tax bracket).
Hit the LIKE Button.
Statement of Shareholders' equity Amount XXX XX xx Beginning equity account balance Abbir Net earnings Addin other comprehensive income Less Dividends Less". Tresury stock purchases : Ending Equity account balance x (+) XXXX