Tamarisk, Inc. has 12000 shares of 4%, $100 par value, cumulative preferred stock and 120000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $30000 dividend, the

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

preferred stockholders will receive $15500 and the common stockholders will receive $15500.

$30000 will be held as restricted retained earnings and paid out at some future date.

preferred stockholders will receive the entire $30000.