Outstanding stock of the Hall Corporation included 40000 shares of $5 par common stock and 20000 shares of 5% $10 par non-cumulative preferred stock.In 2021 Hall declared and paid dividends of $8000.In 2022 Hall declared and paid dividends of $24000.How much of the 2022 dividend was distributed to preferred shareholders?

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In 2022, the preferred shareholders are entitled to 5% of the $10 par value of 20,000 shares, which is $10,000. Since the preferred stock is non-cumulative, they do not receive any unpaid dividends from previous years.

Outstanding Stock of the Hall Corporation Included 40000 Shares of $5