Arm, Inc.has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2021.If the board of directors declares a $200,000 dividend, the
A)preferred stockholders will receive 1/10th of what the common stockholders will receive.
B)preferred stockholders will receive the entire $200,000.
C)$50,000 will be held as restricted retained earnings and paid out at some future date.
D)preferred stockholders will receive $50,000 and the common stockholders will receive $150,000.