Question: Norton, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2008, and December 31, 2009. The board of directors declared and paid a $50,000 dividend in 2008. In 2009, $100,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2009?
Preferred Common
a.$0 $100,000
b.$60,000 $40,000
c.$50,000 $50,000
d.$100,000 $0