Navid Corporation has 12,000 shares ($10 par value) of 12% cumulative, nonparticipating, preferred stock outstanding.

The company also has 120,000 shares ($5 par value) of common stock outstanding. In the company's first year of

operation, no dividends were declared and paid. During the second year, the company declared and paid cash dividends

of $30,600.

This dividend $30,600 of should be distributed as follows:

A) $24,000 preferred; $1,500 common.

B) $28,800 preferred; $1,800 common.

C) $7,500 preferred; $7,500 common.

D) $15,000 preferred; $0 common.

E) None of the above.

Use the following information to answer questions 35.

The Arak Corporation reported the following stockholders' equity on January 1 of the year 2020:

Common stock, $? par, 10,000,000 shares
authorized, 700,000 shares issued	$ 4,200,000
Paid-in capital in excess of par, common	16,000,000
Retained earnings	1,760,000
	21,960,000
Less: Treasury stocks (24,000 at cost)	(480,000)
Total stockholders equity	$21,480,000

During the year 2020, the Corporation completed the following transactions:

Jan 03	Sold (issued) 1,000,000 of its new common shares at $ 28 per share. Legal, promotional, and accounting services necessary to complete this transaction cost $150,000.
May20	Resold 10,000 shares of treasury stock for $25 per share.
Nov 20	Directors declared a $0.40 per share cash dividend payable on December 12th.
Dec 12	Paid the dividend declared on November 20th