### Problem regarding preferred stockholders

Assignment Help Accounting Basics
##### Reference no: EM13128949

Koon Corporation has the following stock outstanding:

6% Preferred, \$100 Par \$1,200,000

Common Stock, \$50 Par 2,000,000

No dividends were paid the previous 2 years. If Koon declares \$400,000 of dividends in the current year, how much will preferred stockholders receive if the preferred stock is cumulative?

a) \$144,000

b) \$72,000

c) \$184,000

d) \$216,000

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