DX Had the Following Shares Outstanding: Preferred Shares, $3, 2,000

DX had the following shares outstanding: Preferred shares, $3, 2,000 shares = $100,000 Common shares, 2,000 shares = $200,000
(Matching dividend, if applicable, $6)
The preferred shares are cumulative, fully participating; dividends are three years in arrears, excluding the current year; dividends declared in the current year amount to
$42,000.The total amount of dividends to which preferred shareholders are entitled is:

A) $16,000
B) $26,000
C) $24,500
D) $20,000

Correct Answer:

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