Watson, Inc

Multiple Choice

Watson, Inc.has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2020.There were no dividends declared in 2018.The board of directors declares and pays a $90,000 dividend in 2019 and in 2020.What is the amount of dividends received by the common stockholders in 2020?

A) $30,000.
B) $40,000.
C) $50,000.
D) $0.