Agler, Inc

Agler, Inc.has 10,000 shares of 7%, $100 par value, cumulative preference shares and 100,000 ordinary shares with a $1 par value outstanding at December 31, 2011.If the board of directors declares a $60,000 dividend, the

A) preference shareholders will receive 1/10th of what the ordinary shareholders will receive.
B) preference shareholders will receive the entire $60,000.
C) $60,000 will be held as restricted retained earnings and paid out at some future date.
D) preference shareholders will receive $30,000 and the ordinary shareholders will receive $30,000.