Outstanding Stock of the Zone Corporation Included 20,000 Shares of $5

Multiple Choice

Outstanding stock of the Zone Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 6%, $10 par noncumulative preferred stock. In 2017, Zone declared and paid dividends of $2,000. In 2018, Zone declared and paid dividends of $6,000. How much of the 2018 dividend was distributed to preferred shareholders?

A) $2,000
B) $4,000
C) $3,000
D) None of these answers are correct