Outstanding Stock of the West Corporation Included 40,000 Shares of $5

Multiple Choice

Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cumulative preferred stock.In 2019, West declared and paid dividends of $4,000.In 2020, West declared and paid dividends of $20,000.How much of the 2020 dividend was distributed to preferred shareholders?

A) $9,000.
B) $15,000.
C) $5,000.
D) None of these answer choices are correct.