On January 1, 20X8, Pullman Company acquired 30 percent of Skate Company's common stock, at underlying book value of $100,000. Skate has 100,000 shares of $2 par value, 5 percent cumulative preferred stock outstanding. No dividends are in arrears. Skate reported net income of $150,000 for 20X8 and paid total dividends of $72,000. Pullman uses the equity method to account for this investment.

Based on the preceding information, what amount would Pullman Company receive as dividends from Skate for the year?

Multiple Choice

• $62,000

• $21,600

• $18,600

• $54,000