QUESTION 1

1. Koala Corporation has the following stock outstanding on December 31, 2016:

   (a)	Preferred Stock (8 percent cumulative, $20 par, 100,000 shares authorized; 10,000 shares issued and outstanding)	$ 200,000
   (b)	Common Stock ($14 par, 100,000 shares authorized, 120,000 shares issued and outstanding)	1,680,000

   Koala did not pay any dividends in 2014. In 2015, they paid total dividends of $20,000, and in 2016, they paid total dividends of $50,000. What amount of dividends will be paid to common stockholders in 2016?

   	A.	$22,000
   	B.	$16,000
   	C.	$28,000
   	D.	$20,000