Sweet Company's outstanding stock consists of 1100 shares of cumulative 6% preferred stock with a $100 par value and 10,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & PaidYear 1$2100?Year 2$6100?Year 3$32,500?The amount of dividends paid to preferred and common shareholders in year 3 is:
A. $6600 preferred; $25,900 common.
B. $0 preferred; $32,500 common.
C. $19,800 preferred; $12,700 common.
D. $32,500 preferred; $0 common.
E. $11,600 preferred; $20,900 common.
Answer: E
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