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Lopez Inc. has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December
Lopez Inc. has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 1999 and December 31, 2000. The board of directors declared and paid a $2,000 dividend in 1999. In 2000, $10,000 of dividends are declared and paid. What are the dividends received by preferred and common shareholders in 2000?
a. Preferred 6,000 Common 4,000
b. Preferred $5,000 Common $5,000
c. Preferred $4,000 Common $6,000
d. Preferred $3,000 Common $7,000
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