Brief Exercise 10-7 Determine the amount of preferred stock dividends (LO10-3) Rachel's Designs has 1,200 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $12,000 in 2021. How much of the $12,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders? Preferred dividends in arrears for 2019 and 2020 Preferred dividends for 2021 Remaining dividends to common stockholders Total dividends