What are the amounts of dividends payable

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Question - The Gradison Corporation had the following classes of stock outstanding as of December 31, 2011:

Common stock, $20 par value, 20,000 shares outstanding

Preferred stock, 6 percent, $100 par value, cumulative, 2,000 shares outstanding

No dividends were paid on preferred stock for 2009 and 2010. On December 31, 2011, a total cash dividend of $200,000 was declared. What are the amounts of dividends payable on both the common and preferred stock, respectively?

a. $0 and $200,000

b. $164,000 and $36,000

c. $176,000 and $24,000

d. $188,000 and $12,000

Reference no: EM131796713

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