Swifty, Inc. has 10500 shares of 6%, $100 par value, cumulative preferred stock and 105000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $63000 dividend, the

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

preferred shareholders will receive the entire $63000.

$63000 will be held as restricted retained earnings and paid out at some future date.

preferred shareholders will receive $31500 and the common shareholders will receive $31500.