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 2016 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 2016 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 2016 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