Answer:
The dividends received by the preferred shareholders in 2017 is $7,000
Explanation:
The computation of the preference shareholder dividend is shown below:
= Dividend declared - total preference dividend
= $12,000 - $5,000
= $7,000
where,
dividend declared = $12,000
Each year dividend = Number of shares × $ per share price × rate
= 1,000 shares × $50 × 8%
= $4,000
Since the dividend was paid on 2016 is $3,000
So, the balance would be = $4,000 - $3,000
= $1,000
So the total preferred dividend in 2017 = $4000 + $1,000 = $5,000
