Sweet Company's outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 5,000 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$2,000year 2$6,000year 3$32,000The total amount of dividends paid to preferred and common shareholders over the three-year period is:
A. $10,000 preferred; $30,000 common.
B. $5,000 preferred; $35,000 common.
C. $15,000 preferred; $25,000 common.
D. $12,000 preferred; $28,000 common.
E. $11,000 preferred; $29,000 common.
Answer: C
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