Berman Inc. has 6,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2016, and December 31, 2017. The board of directors declared and paid an $12,000 dividend in 2016. In 2017, $72,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2017?

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The preferred stock is cumulative, which means that any unpaid dividends from previous years must be paid before any dividends can be paid to common stockholders. In 2016, the preferred stockholders received $12,000 in dividends, which is equal to the $3,000 annual dividend ($50 par value x 6% dividend rate x 6,000 shares) for the year. In 2017, the preferred stockholders are entitled to receive $18,000 in dividends ($3,000 for the current year plus $15,000 for the unpaid dividends from 2016). After the preferred stockholders have received their dividends, the remaining $54,000 ($72,000 total dividends - $18,000 preferred dividends) is available for distribution to the common stockholders.