Halverstein Company's Outstanding Stock Consists of 7,000 Shares of Cumulative

Multiple Choice

Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. The amount of dividends paid to preferred and common shareholders in 2018 is:

A) $4,500 preferred; $27,500 common.
B) $3,500 preferred; $28,500 common.
C) $8,000 preferred; $24,000 common.
D) $9,000 preferred; $23,000 common.
E) $1,000 preferred; $31,000 common.