Denson, Inc.has 10,000 shares of 5%, $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2020.There were no dividends declared in 2019.The board of directors declares and pays a $120,000 dividend in 2020.What is the amount of dividends received by the common stockholders in 2020?

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The preferred stockholders receive their 5% dividend first, which is $50,000 (5% of $100 par value * 10,000 shares). Since the preferred stock is non-cumulative, they do not receive dividends for 2019. The remaining $70,000 ($120,000 total dividend - $50,000 preferred dividend) is distributed to the common stockholders.