Annette's accessories had the following stock issued and outstanding at January 1, 2019.

150,000 shares of $1 par common stock

10,000 shares of $50 par, 8%, cumulative preferred stock

On March 5, 2019 Annette's declared a $100,000 cash dividend to be paid March 31 to shareholders of record on March 21.

A. One year's worth of dividends is in arrears for preferred shareholders.

B. Two year's worth of dividends is in arrears for preferred shareholders.

C. Instead of a $100,000 dividend, Annette's paid a $70,000 dividend and one year of dividends was in arrears.

Alternative 1- Actual Numbers		Distribution to Shareholders
		Preferred	Common
Total dividend declared	100,000.00
Preferred Arrearage	-	-
Current Preferred Dividend	40,000.00	40,000.00
Available & Distributed to Common	60,000.00		60,000.00
Total dividend declared	-	40,000.00	60,000.00
Dividends in Arrears	-