Sweet Company’s outstanding stock consists of 1,700 shares of cumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 $ 3,700 year 2 $ 7,700 year 3 $ 40,500 The amount of dividends paid to preferred and common shareholders in year 3 is:-. a. $0 preferred; $40,500 common.
b. $6,800 preferred; $33,700 common.
c. $40,500 preferred; $0 common.
d. $9,000 preferred; $31,500 common.
e. $20,400 preferred; $20,100 common.