Swan Creek Company has 40,000 shares of cumulative preferred 2% stock, $60 par and 50,000 shares of $50 par common stock. The following amounts were distributed as dividends:year 1 30000 my answer was 18000 common stock

To calculate the dividends distributed to the common stockholders, we first need to determine the total dividends paid to the preferred stockholders. The preferred stock has a 2% dividend rate and 40,000 shares, so the total dividends paid to the preferred stockholders would be:

Preferred dividend = 2% * $60 par * 40,000 shares
Preferred dividend = $1.20 * 40,000 shares
Preferred dividend = $48,000

Now, to find the dividends distributed to the common stockholders, we need to subtract the preferred dividend from the total dividends distributed. Since the total dividends distributed were $30,000, we have:

Dividends to common stockholders = Total dividends - Preferred dividend
Dividends to common stockholders = $30,000 - $48,000
Dividends to common stockholders = -$18,000

However, it's important to note that the calculated result is negative (-$18,000). This suggests that the company did not distribute any dividends to the common stockholders in year 1.