Curren Co. paid dividends of $3,000; $6,000; and $10,000 during 2010, 2011 and 2012, respectively. The company had 500 shares of 5%, $200 par value preferred stock outstanding that paid cumulative dividend. The amount of dividends received by the common shareholders during 2012 would be:

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The preferred stock dividend is $5,000 (500 shares x $200 par value x 5%).
Year 1: Preferred will receive the entire $3,000 dividend and owe preferred shareholders $2,000.
Year 2: Preferred will receive the entire $6,000 dividend and owe preferred shareholders $1,000.
Year 3: Preferred will receive $6,000 dividend which is the $5,000 for the current year and $1,000 of arrears.
Common will receive $4,000 ($10,000 minus $6,000)

Curren Co Paid Dividends of $3,000; $6,000; and $10,000 During 2010