Last year, Ingenious Websites (IW) paid a dividend equal to $1.40 per share. IW follows the low regular dividend plus extras policy to determine its annual dividend. The policy requires the minimum dividend to be increased by 25 percent of the amount of earnings that exceeds $400,000. Last year's earnings were $500,000. If IW has 250,000 shares outstanding, how much is the minimum (low regular) dividend the firm pays each year?