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Question - At December 31, 2012, Olsen Company had 60,000 shares of cumulative preferred stock outstanding. It has a par value of $100 per share, and an 8% dividend rate. Dividends were last paid on December 31, 2011. On December 31, 2011 there were no dividends in arrears. There are also 100,000 shares of $1 par value common stock outstanding. The amount of dividends payable reported as a liability on the balance sheet for 12/31/12 is
a. $488,000.
b. $480,000.
c. $580,000.
d. cannot be determined with the information given
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