Denson, Inc

Multiple Choice

Denson, Inc.has 10,000 shares of 5%, $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2020.There were no dividends declared in 2019.The board of directors declares and pays a $120,000 dividend in 2020.What is the amount of dividends received by the common stockholders in 2020?

A) $0.
B) $50,000.
C) $120,000.
D) $70,000.