Aim, Inc, Has 10,000 Shares of 4%, $100 Par Value, Noncumulative

Multiple Choice

Aim, Inc., has 10,000 shares of 4%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2015. There were no dividends declared in 2014. The board of directors declares and pays a $120,000 dividend in 2015. What is the amount of dividends received by the common stockholders in 2015?

A) $0
B) $40,000
C) $60,000
D) $80,000