Question - The Gradison Corporation had the following classes of stock outstanding as of December 31, 2011:
Common stock, $20 par value, 20,000 shares outstanding
Preferred stock, 6 percent, $100 par value, cumulative, 2,000 shares outstanding
No dividends were paid on preferred stock for 2009 and 2010. On December 31, 2011, a total cash dividend of $200,000 was declared. What are the amounts of dividends payable on both the common and preferred stock, respectively?
a. $0 and $200,000
b. $164,000 and $36,000
c. $176,000 and $24,000
d. $188,000 and $12,000