Which of the following statements is true with regard to 7% cumulative, participating preferred stock?

a. The issue price of this stock is reported in the preferred stock account on the balance sheet.

b. Stockholders who hold this type of stock are guaranteed a dividend each year.

c. If the corporation pays a per share dividend in excess of 7% of the preferred stock's par value and there are no dividends in arrears, the preferred shares will receive a share of the amounts available for distribution as dividends to other classes of stock.

d. If dividends are not declared, they accumulate and a liability must be reported on the balance sheet for any amount in arrears that is owed to the preferred stockholders