A company has $10 par common stock outstanding with a total par value of $4,000,000 and 5%, $50 par cumulative,

nonparticipating preferred stock with a total par value of $3,000,000. No dividend was declared on the stock in the last year.

In the current year, the company earned a net income of $1,700,000 and dividends paid, included a dividend of $3 per share on

the common stock. What is the total amount of dividend paid to shareholders in the current year?

a. $1,350,000

b. $300,000

c. $1,500,000

d. $1,700,000

Please explain how you determined your answer.