Norris Company has the following capital structure:

• Preferred stock, 6%, $15 par, 20,000 shares issued and outstanding
• Common stock, $1 par, 100,000 shares issued and outstanding

If the preferred stock is cumulative and 3 years of dividends are in arrears, how much would the common shareholders receive under two different scenarios?

Scenario One: The company declares $60,000 in dividends

Scenario Two: The company declares $100,000 in dividends

--Select one:

A.$0 $28,000

B.$12,000 $28,000

C. $6,000 $46,000

D. $0 $46,000