Art, Inc., has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2011. The board of directors declares and pays a $45,000 dividend in 2012 and in 2013. What is the amount of dividends received by the common stockholders in 2013?

a. $15,000

b. $25,000

c. $45,000

d. $0

Answer rating: 100% (QA)

a 15000 The preferred shares should receive a dividend of 25000 each yea... View the full answer