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Karin, Inc. has 5,000 shares of 6%, $200 par value, cumulative preferred stock and 100,000 shares of $2 par value common stock outstanding. There were
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Karin, Inc. has 5,000 shares of 6%, $200 par value, cumulative preferred stock and 100,000 shares of $2 par value common stock outstanding. There were no dividends declared in 2015. The board of directors declared and paid dividends of $100,000 each in 2016 and 2017. What is the amount of dividends received by the common stockholders in 2017?
A. $40,000
B. $20,000
C. $80,000
D. $60,000
Karin, Inc. has 5,000 shares of 6%, $200 par value, cumulative preferred stock and 100,000 shares of $2 par value common stock outstanding. There were no dividends declared in 2015. The board of directors declared and paid dividends of $100,000 each in 2016 and 2017. What is the amount of dividends received by the common stockholders in 2017?
| A. | $40,000 | |
| B. | $20,000 | |
| C. | $80,000 | |
| D. | $60,000 |
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