6. Given the following for the Vitale Company; the company began operations on 1/1/1.

Preferred Stock, 4%, cumulative 20,000

Common Stock 20,000

Cash Dividends paid:

Year 1 $600

Year 2 $600

Year 3 $2,000

Year 3 Dividends received by the Preferred shareholders is:

a) $400 b) $800 c) $600 d) $1,200 e) $2,000

Please show work with answer