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.
2016 $ 20,000
2017 $6,000
2018 $32,000
The amount of dividends paid to preferred and common shareholders in 2016 is
- 200 preferred; $19,800 common.
- $4,000 preferred; $16,000 common.
- $17,000 preferred; $3,000 common.
- $10,000 preferred; $10,000 common.
- $20,000 preferred; $0 common