Outstanding Stock of the West Corporation Included 40,000 Shares of $5

question 145

Multiple Choice

Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cumulative preferred stock. In 2016, West declared and paid dividends of $4,000. In 2017, West declared and paid dividends of $20,000. How much of the 2017 dividend was distributed to preferred shareholders?

• A)$9,000.
• B)$15,000.
• C)$5,000.
• D)None of these answer choices are correct.

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Definitions:

Transactions

The action of conducting business, trade, or an agreement between two or more parties.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States to harmonize the law among the states.

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