The Shareholders' Equity of Red Corporation Includes $200,000 of $1

Multiple Choice

The shareholders' equity of Red Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors of Red declared cash dividends of $50,000 in 2018 after paying $20,000 cash dividends in 2017 and $40,000 in 2016. What is the amount of dividends common shareholders will receive in 2018?

A) $18,000.
B) $22,000.
C) $26,000.
D) $28,000.