Bonita, Inc. has 9500 shares of 8%, $100 par value, cumulative preferred stock and 95000 shares of $1 par value common stock outstanding at December 31, 2017. If the board of directors declares a $76000 dividend, the : a) $76000 will be held as restricted retained earnings and paid out at some future date.
b) preferred shareholders will receive $38000 and the common shareholders will receive $38000.
c) preferred shareholders will receive the entire $76000.
d) preferred shareholders will receive 1/10th of what the common shareholders will receive.