Art, Inc, Has 5,000 Shares of 4%, $100 Par Value, Cumulative

Multiple Choice

Art, Inc., has 5,000 shares of 4%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2016. The board of directors declares and pays a $45,000 dividend in 2017 and in 2018. What is the amount of dividends received by the common stockholders in 2018?

A) $25,000
B) $20,000
C) $45,000
D) $0