At December 31, 2018, Fashion Forward Inc

At December 31, 2018, Fashion Forward Inc. has 15,000, $4, cumulative preferred shares issued. If the board of directors declares a $55,000 dividend at this date

A) the company will still owe the preferred shareholders $5,000 and should record a dividend payable for this amount.
B) the company will owe the preferred shareholders nothing further.
C) $5,000 will be disclosed as dividends in arrears in the notes to the financial statements.
D) the company still has to pay the preferred shareholders $60,000, regardless of what amount was declared.