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On January 1, Year 1, Fred Company issued 10,000 shares of 10%, \$200 par value cumulative preferred stock. In Year 1 and Year 2, no dividends were declared. In Year 3, Fred had a profitable year and decided to pay dividends to stockholders of both preferred and common stock.

If Fred Co. declares a dividend in the amount of \$1,200,000 in Year 3, how much will Fred Co. pay to the common stockholders in that year?

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