Cash: $1,000,000 Unearned Revenue: $70,000 Common Stock $1 par 2,000,000 shares issued: $2,000,000 Paid in Capital in excess of par Common Stock: $500,000 Treasury Stock $10 cost: $150,000 Paid in Capital in excess of cost basis Treasury Stock: $15,000 Retained Earnings: $640,000 Preferred Stock: $1000 par 6% $600,000 Paid in Capital in excess of par Preferred Stock: $200,000

We generated $120,000 of net income for 2011. How much of this should go to the preferred share holders? a.$120,000 b.$114,000 c.$100,000 d.$36,000