Kean's Pumping, Inc. has $20,000,$ $$4,$ cumulative preferred shares issued at $$150,$ and $100,000$ common shares issued at $$1,$ at December $31,2021.$ If the board of directors declares a $$60,000$ dividend, the

Question $4$Select one:

A$.$

preferred shareholders will receive $$30,000$ and the common shareholders will receive $$30,000.$

B$.$

preferred shareholders will receive the entire $$60,000.$

C$.$

preferred shareholders will receive $1/10$th of what the common shareholders will receive.

D$.$

$$60,000$ will be held as restricted retained earnings and paid out at some future date.