At January 1, 20X4, Clare Corporation had outstanding capital shares as shown below. During December, 20X4, it declared and paid cash dividends of $48,000 to the preferred shareholders. (1) Common shares--100,000 shares outstanding (2) Preferred shares--20,000 shares outstanding, $0.80 cumulative. The shares were issued at a price of $15 per share. How many years were the preferred dividends in arrears? O Four years. o One year. O Two years. O Three years. 2020 McGraw-Hill Education. All rights reserved