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

question 233

Multiple Choice

Outstanding stock of the Hall Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 6%, $10 par non-cumulative preferred stock. In 2013, Hall declared and paid dividends of $8,000. In 2014, Hall declared and paid dividends of $24,000. How much of the 2014 dividend was distributed to preferred shareholders?

• A) $16,000.
• B) $28,000.
• C) $12,000.
• D) None of these answer choices are correct.

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