Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cumulative preferred stock. In 2022, West declared and paid dividends of $4,000. In 2023, West declared and paid dividends of $20,000. How much of the 2023 dividend was distributed to the preferred stockholders?
A. $9,000.
B. None of these answer choices are correct.
C. $15,000.
D. $5,000

Shareholders, also known as stockholders, are the shareholders of a company's shares outstanding, which represent a residue left fraction of a corporation's assets and profits as well as a proportion of the voting power of the company.

What is the distinction between stockholders and shareholders?

To get into the nitty gritty of the aspects, "stockholder" theoretical part to the owner of stock, which may be interpreted as inventory rather than shares. In contrast, "shareholder" refers to the owner of an equity, which may only refer to an equity stake in a company.

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