Outstanding Stock of the Core Corporation Included 20,000 Shares of $5

question 164

Multiple Choice

Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par noncumulative preferred stock. In 2014, Core declared and paid dividends of $4,000. In 2015, Core declared and paid dividends of $12,000. How much of the 2015 dividend was distributed to preferred shareholders?

• A)$8,000
• B)$4,000
• C)$6,000
• D)None of these answers are correct

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Definitions:

Generalizations

A process in reasoning where broader conclusions are drawn from specific cases or examples.

Stereotyping

The act of ascribing generalized and often inaccurate or oversimplified characteristics to members of a group.

Prejudice

Preconceived opinion that is not based on reason or actual experience, often directed towards people or groups based on their identity.

Evidence

Information or facts that are used to support the validity of an assertion, argument, or claim.