The balance sheet of Despot Incorporated included the follow…

The balance sheet of Despot Incorporated included the following: Common stock, 25 million shares at $20 par $ 500 million Paid-in capital—excess of par 3,000 million Retained earnings 980 million In February, Despot declared cash dividends of $12 million that were paid in April of that year. What effect did the April transaction have on Despot’s accounts?

The shareholders’ equity of Green Corporation includes $200,…

The shareholders’ equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative, nonparticipating preferred stock. The board of directors of Green declared cash dividends of $50,000 in the current year after paying $20,000 cash dividends in each of the previous two years. What is the amount of dividends common shareholders will receive in the current year?