Fargo Company's outstanding stock consists of 300 shares of noncumulative 5% preferred stock with a $10 par value and 3600 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declaredyear 1$26,000?year 2$9000?year 3$35,000?The amount of dividends paid to preferred and common shareholders in year 1 is:
A. $13,000 preferred; $13,000 common.
B. $19,500 preferred; $6500 common.
C. $150 preferred; $25,850 common.
D. $26,000 preferred; $0 common.
E. $3000 preferred; $23,000 common.
Answer: C
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