The Following Information Is Provided for Bold Company for the Year

Multiple Choice

The following information is provided for Bold Company for the year 2017: • Preferred stock, 6%, $50 par value, 1,000 shares issued and outstanding
• Common stock, $100 par value, 2,000 shares issued and outstanding
• Dividends in arrears for three prior years (2014­­-2016)
• Total dividends declared and paid in 2017 were $50,000.
Assuming the preferred stock is cumulative, what amount of the 2017 dividend declaration for dividends in arrears was recorded with a debit to the Dividends payable account on the date of declaration?

A) $12,000.
B) $3,000.
C) $0.
D) $50,000.