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Question - A Switttsch company has 25,000 shares of $1 par value common stock outstanding and 100,000 shares of 6%, $50 par value cumulative preferred stock outstanding. As of January 1, 2016, there were no preferred dividends in arrears. The company declared and paid cash dividends totaling $160,000 in 2016 and $85,000 in 2017. In 2018, the company declared and will pay cash dividends totaling $800,000. Of this $800,000, what is the amount of cash dividends payable to common shareholders in 2018?
A. $355,000.
B. $500,000.
C. $140,000.
D. $800,000.
E. $145,000.
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