32. Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2018, and December 31, 2017. The board of directors declared and paid an $8,000 dividend in 2017. In 2018, S40,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2018? A) $28,000 B) $20,000 C) $12,000 D) $10,000 33. Sandy Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $800,000. What is the required journal entry as a result of this litigation? A) Debit Litigation Expense for $800,000 and credit Litigation liability for $800,000. B) No journal entry is required. C) Debit Litigation Expense for $320,000 and credit Litigation Liability for $320,000. D) Debit Litigation Expense for $480,000 and credit Litigation Liability for $480,000