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

question 76

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 2020, Core declared and paid dividends of $4,000.In 2021, Core declared and paid dividends of $12,000.How much of the 2021 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:

Raw Materials

Basic materials and substances used in the initial stages of production and manufacturing processes.

Multinational Corporation

A corporate organization that owns or controls production of goods or services in one or more countries other than its home country.

Foreign Exchange

The trading of currencies from different countries against each other.

Mutual Benefits

A situation or agreement in which all parties involved gain advantages or profits.