Sweet Company's Outstanding Stock Consists of 1,000 Shares of Cumulative

Multiple Choice

Sweet Company's outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 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 3 is:

A) $7,000 preferred; $25,000 common.
B) $5,000 preferred; $27,000 common.
C) $15,000 preferred; $17,000 common.
D) $32,000 preferred; $0 common.
E) $0 preferred; $32,000 common.