Gracey's Department Stores Has $200,000 of 6% Noncumulative,nonparticipating,preferred Stock Outstanding

Multiple Choice

Gracey's Department Stores has $200,000 of 6% noncumulative,nonparticipating,preferred stock outstanding.Gracey's also has $600,000 of common stock outstanding.During its first year,the company paid cash dividends of $30,000.This dividend should be distributed as follows:

A) $15,000 preferred;$15,000 common.
B) $6,000 preferred;$24,000 common.
C) $30,000 preferred;$0 common.
D) $12,000 preferred;$18,000 common.
E) $0 preferred;$30,000 common.