Sabas Company Has 20,000 Shares of $100 Par, 2% Cumulative

Multiple Choice

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1:
$10,000
Year 2:
45,000
Year 3:
90,000
Determine the dividends per share for preferred and common stock for the first year.

A) $0.50 and $0.10
B) $0.00 and $0.10
C) $0.50 and $0.00
D) $2.00 and $0.00