Dividends Were Not Declared by Royal Inc

question 47

Multiple Choice

Dividends were not declared by Royal Inc.in 2016.During 2017,total dividends declared amount to $20,000.There are 6,000 shares of $1 cumulative preferred shares outstanding and 10,000 common shares outstanding.The total amount of dividends payable to each class of shares in 2017 amounts to:

• A) $18,000 to preferred, $2,000 to common
• B) $6,000 to preferred, $14,000 to common
• C) $12,000 to preferred, $8,000 to common
• D) $10,000 to preferred, $10,000 to common

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Definitions:

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A state of equilibrium or equal distribution of weight, amount, or other elements required for steadiness.

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The act of holding back, controlling, or limiting something or someone to prevent excessive actions or reactions.

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