Answer:
d.$24,000
Explanation:
The preferred stock is cumulative, in that preferred stockholders are entitled to arrears of dividends for years in which dividends were not paid let alone declared.
The dividends owed to preferred stockholders were for 2 years , 2016 and 2017, hence, we compute the outstanding preferred stock dividends for the 2 years as follows:
annual preferred stock dividends=number of stocks*par value*dividend rate
number of stocks=2,000
par value=$100
dividend rate=6%
annual preferred stock dividends=2,000*$100*6%
annual preferred stock dividends =$12,000
2 years' dividends=$12,000*2=$24,000
