Pearl Company Has 80,000 Shares of Common Stock and 40,000

Multiple Choice

Pearl Company has 80,000 shares of common stock and 40,000 shares of preferred stock outstanding.There was no change in the number of common or preferred shares outstanding during the year.Preferred stockholders received dividends totaling $150,000 in the year.Common stockholders received dividends totaling $300,000.If the dividend payout ratio for the year was 40%, then the net income was:

A) $620,000.
B) $900,000.
C) $760,000.
D) $330,000.