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Financial Accounting

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Axis: Amount Dividends Go To Common Stock

FINACT-F53PEN

On January 1, Year 1, Axis Company issued 10,000 shares of 10%, \$20 par value cumulative preferred stock. In Year 1 and Year 2, no dividends were declared. In Year 3, Axis had a profitable year and decided to pay dividends to stockholders of both preferred and common stock.

If Axis Co. declares a dividend in the amount of \$200,000 in Year 3, how much will Axis Co. pay to the common stockholders in Year 3?