California Adventures issues 5,000 shares of 8%,$100 par value preferred stock at the beginning of...

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Accounting

California Adventures issues 5,000 shares of 8%,$100 par value preferred stock at the beginning of 2023. All remaining shares are common stock. The
company was not able to pay dividends in 2023, but plans to pay dividends of $100,000in2024.
Assuming the preferred stock is cumulative, how much of the $100,000 dividend will be paid to preferred stockholders and how much will be paid to common
stockholders in 2024?
Multiple Choice
$20,000 to preferred stockholders and $80,000 to common stockholders
$80,000 to preferred stockholders and $20,000 to common stockholders
$40,000 to preferred stockholders and $60,000 to common stockholders
$100,000 to preferred stockholders and $0 to common stockholders
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