What is the most that will be available out


Frostbite Cold Storage Company was incorporated early in 2007 Since then, the following stock has been outstanding:

Preferred stock, 5%, $25 par 8,000 shares
Common stock, $20 par 10,000 shares

On December 31, 2009, the company declared and paid a total of $50,000 in dividends. This was the first dividend declared by the business. That is, until this date no dividends had been declared or paid during the first two years of operations.

If the preferred stock is cumulative, what is the most that will be available out of the $50,000 dividend for payment to the COMMON shareholders?

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Accounting Basics: What is the most that will be available out
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