The Mailer Corporation Had the Following Classes of Stock Outstanding

question 86

Multiple Choice

The Mailer Corporation had the following classes of stock outstanding as of December 31,2014: Common stock,$20 par value,20,000 shares outstanding
Preferred stock,6 percent,$100 par value,cumulative,2,000 shares outstanding
No dividends were paid on preferred stock for 2012 and 2013.On December 31,2014,a total cash dividend of $200,000 was declared.What are the amounts of dividends payable on both the common and preferred stock,respectively?

• A) $0 and $200,000
• B) $164,000 and $36,000
• C) $176,000 and $24,000
• D) $188,000 and $12,000

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