Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2010. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 dividend in 2010. What is the amount of dividends received by the common stockholders in 2010?

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The preferred stockholders receive $25,000 (5,000 shares x $100 x 5%) as dividends for 2010. Since the preferred stock is noncumulative, they do not receive dividends for 2009. The remaining $20,000 ($45,000 - $25,000) is distributed to the common stockholders.