Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock an

Question

Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2009, and December 31, 2010. The board of directors declared and paid a $3,000 dividend in 2009. In 2010, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2010? Preferred Common
a. $9,000 $6,000
b. $7,500 $7,500
c. $5,000 $10,000
d. $4,000 $11,000

i chose the answer C but i wanted to doublecheck to see if my answer is correct! Thanks

Explanation / Answer

Total dividend decalred in 2010                     $15,000
Less : Preference dividend
          2,000 shares x $50 x 4%                      $4,000
Dividend to 50,000 Common Stockholders      $11,000

d. $4,000 $11,000

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