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What amount of dividends received by preferred shareholders

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Question - Seaside Dev. Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common shares outstanding. In its first three years of operation, the company paid cash dividends as follows: Year 1: $8,000; Year 2: $18,000; and Year 3: $24,000. What the amount of dividends received by the preferred shareholders in year 2?

1) $12,000

2) $8,000

3) $18,000

4) $9,000

Reference no: EM133046287

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