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Question - Black Corporation declared $50,000 cash dividends to shareholders. The corporation has 4,000 shares of $25-par, 5% preferred stock, and 15,000 shares of $10-par common stock. The preferred stock is non-cumulative. How much will be distributed to the preferred and common stockholders on the date of payment?
-$0 to preferred, $50,000 to common
-$5,000 to preferred, $45,000 to common
-$2,500 to preferred, $47,500 to common
-None are correct
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