Pina Colada Corp. has 13500 shares of 4%, $100 par value, cumulative preferred stock and 135000 shares of $1 par value common stock outstanding at December 31, 2017. If the board of directors declares a $33750 dividend, the

preferred stockholders will receive $17750 and the common stockholders will receive $17750.

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

$33750 will be held as restricted retained earnings and paid out at some future date.

preferred stockholders will receive the entire $33750.