Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends. The amount of dividends paid to preferred and common shareholders in year 1 is:
A)$200 preferred; $19,800 common.
B)$4,000 preferred; $16,000 common.
C)$17,000 preferred; $3,000 common.
D)$10,000 preferred; $10,000 common.
E)$20,000 preferred; $0 common.

Question

Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends.  The amount of dividends paid to preferred and common shareholders in year 1 is:
A)$200 preferred; $19,800 common. 
B)$4,000 preferred; $16,000 common. 
C)$17,000 preferred; $3,000 common. 
D)$10,000 preferred; $10,000 common. 
E)$20,000 preferred; $0 common.

Quizplus · Accepted Answer

The Answer of Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends.  The amount of dividends paid to preferred and common shareholders in year 1 is:
A)$200 preferred; $19,800 common. 
B)$4,000 preferred; $16,000 common. 
C)$17,000 preferred; $3,000 common. 
D)$10,000 preferred; $10,000 common. 
E)$20,000 preferred; $0 common.

Fargo Company's Outstanding Stock Consists of 400 Shares of Noncumulative