The Following Information Is Provided for Bold Company for the Year

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.
How much of the 2017 dividend payment was paid to the preferred stockholders assuming the preferred stock is cumulative?

A) $12,000.
B) $3,000.
C) $47,000.
D) $38,000.

Correct Answer:

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