Archer, Inc Has 10,000 Shares of 5%, $100 Par Value

Multiple Choice

Archer, Inc has 10,000 shares of 5%, $100 par value, noncumulative preference shares and 40,000 ordinary shares with a $1 par value outstanding at December 31, 2011.There were no dividends declared in 2010.The board of directors declares and pays a $120,000 dividend in 2011.What is the amount of dividends received by the ordinary shareholders in 2011?

A) $0
B) $50,000
C) $20,000
D) $70,000