Freidrichs Company has issued and outstanding 11,000 shares of cumulative, 5%, 50 par value preference shares which it sold for 54 per share at the beginning of 2015. The company has never paid preference dividends. As of December 31, 2017, dividends in arrears are

a. 55,000.

b. 82,500.

c. 101,250.

d. 89,100.

ANS: B SHOW YOUR WORK