The Surf's Up Issues 1,000 Shares of 6%,$100 Par Value

question 39

Multiple Choice

The Surf's Up issues 1,000 shares of 6%,$100 par value preferred stock at the beginning of 2017.All remaining shares are common stock.The company was not able to pay dividends in 2017,but plans to pay dividends of $18,000 in 2018.Assuming the preferred stock is noncumulative,how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?

• A)$6,000 to preferred stockholders and $12,000 to common stockholders.
• B)$18,000 to preferred stockholders and $0 to common stockholders.
• C)$12,000 to preferred stockholders and $6,000 to common stockholders.

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Definitions:

Levels of Intimacy

Degrees of closeness and shared personal knowledge within a relationship, which can range from superficial to deeply personal.

Secret Test

Behavior designed to indirectly determine a partner’s feelings.

Indirectly Determine

To deduce or ascertain information through indirect methods rather than direct observation or inquiry.

Partner's Feelings

Refers to the emotions and sentiments that one person in a relationship experiences and may communicate to their partner.