Orleans Company Was Incorporated on January 1, 2012

question 42

Multiple Choice

Orleans Company was incorporated on January 1, 2012. Orleans issued 4,000 shares of common stock and 500 shares of preferred stock on that date. The preferred shares are cumulative, $100 par, with an 8% dividend rate. Orleans has not paid any dividends yet. In 2015, Orleans had its first profitable year, and on November 1, 2015, Orleans declared a total dividend of $28,000. What is the total amount that will be paid out to common shareholders?

• A)$4,000
• B)$16,000
• C)$12,000
• D)$28,000

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Definitions:

Oppositional

Characterized by resistance or dissent in attitude or action, often seen in behaviors that are contrary to those expected or requested by others.

Lamellae

Thin layers or plates of tissue, as in the bones, or in the chloroplasts of plant cells, where they form the grana.

Lacunae

Small cavities in bone or cartilage tissue that house osteocytes or chondrocytes, respectively, essential for tissue health and maintenance.

Canaliculi

Small, channel-like structures in bone tissue that allow for the distribution of nutrients and communication among osteocytes.