A firm has the following stockholders' equity balances:

Common stock at par

$$400,000$

Paid $-$ in capital in excess of par

$1,200,000$

Retained earnings

$2,000,000$

In states where the firm's legal capital is defined as the par value of its common stock, the

maximum cash dividend the firm could pay is

A$.$ $$3,200,000$

B$.$ $$1,600,000$

C$.$ $$3,600,000$

D$.$ $$400,000$