Question Details

Accounting Homework Help

Dave Inc. began operations on January 1, year 1. Dave Inc. has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, year 2, and December 31, year 1. The board of directors declared and paid a $5,000 dividend in year 1. In year 2, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in year 2?

a. $17,000

b. $12,000

c. $ 7,000

d. $ 6,000