Fargo Company's Outstanding Stock Consists of 400 Shares of Noncumulative

Multiple Choice

Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends. The amount of dividends paid to preferred and common shareholders in year 1 is:

A) $200 preferred; $19,800 common.
B) $4,000 preferred; $16,000 common.
C) $17,000 preferred; $3,000 common.
D) $10,000 preferred; $10,000 common.
E) $20,000 preferred; $0 common.