Slick Willie Inc.had the following shares outstanding during 20C: (1)Preferred shares,$3,cumulative,1,000 shares with dividends in arrears for 20A and 20B.
(2)Common shares,2,000 shares.
The total dividends declared for the current year were $21,000.What is the total amount of dividends to which the preferred shareholders are entitled?
A)$3,000
B)$6,000
C)$9,000
D)$12,000

Question

Quizplus · Accepted Answer

Preferred shareholders are entitled to $3,000 per year for 3 years (20A, 20B, and 20C), totaling $9,000.