Problem:
Gunning Corporation has the following stock outstanding on December 31, Year 3: (a) Preferred Stock (8 percent cumulative, $20 par,100,000 shares authorized; 10,000 shares issued and outstanding) $200,000 (b) Common Stock ($14 par, 1,000,000 shares authorized, 120,000 shares issued and outstanding) 1,680,000 Gunning did not pay any dividends in Year 1. In Year 2, they paid total dividends of $20,000, and in Year 3, they paid total dividends of $50,000. What amount of dividends will be paid to common stockholders in Year 3? Select one: A. $16,000 B. $20,000 C. $28,000 D. $22,000