Colorful,Inc

question 82

Multiple Choice

Colorful,Inc.was incorporated on January 1,2016.Colorful issued 15,000 shares of common stock and 800 shares of preferred stock on that date.The preferred stock is cumulative,$100 par,with a 12% dividend rate.Colorful has not paid any dividends yet.In 2019,Colorful had its first profitable year,and on December 31,2019,Colorful declared a total dividend of $44,000.What is the total amount that will be paid to common stockholders?

• A) $9600
• B) $38,400
• C) $5600
• D) $44,000

---

Definitions:

Dishabituation

The term used to describe the process in which an infant’s interest is renewed after a change in the stimulus.

Habituation

A psychological and physiological process whereby an individual becomes accustomed to a stimulus through repeated exposure, leading to a decrease in response.

Perceive Change

The process of recognizing or detecting alterations in one's environment or circumstances.

Perceptual Narrowing

The developmental process during which an individual becomes more attuned to specific sensory inputs and loses sensitivity to others, often observed in early childhood.