What apex should report dividends in arrears in the year

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Reference no: EM133009509

Problem 1: At December 31, Year 3 and Year 4, Apex Co. had 3,000 shares of $100 par, 5% cumulative preferred stock outstanding. No dividends were in arrears as of December 31, Year 2. Apex did not declare a divided during Year 3. During Year 4, Apex paid a cash dividend of $10,000 on its preferred stock. apex should report dividends in arrears in its Year 4 financial statements as a(n)

Group of answer choices

Option 1: accrued liability of $15,000.

Option 2: accrued liability of $20,000.

Option 3: disclosure of $20,000.

Option 4: disclosure of $15,000.

Reference no: EM133009509

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