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

Multiple Choice

Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par noncumulative preferred stock. In 2017, Core declared and paid dividends of $4,000. In 2018, Core declared and paid dividends of $12,000. How much of the 2018 dividend was distributed to preferred shareholders?

A) $8,000
B) $4,000
C) $6,000
D) None of these answers are correct