Druffle Industries Has 5,000 Shares of $100 Par, 7% Noncumulative

Multiple Choice

Druffle Industries has 5,000 shares of $100 par, 7% noncumulative, nonparticipating preferred stock issued and outstanding. In 2016, the board of directors declared cash dividends of $75,000. The amount of dividends to be distributed to preferred shareholders is:

A) $350.
B) $35,000.
C) $40,000.
D) $75,000.
E) $110,000.