Question - The Wendy Corporation's April 30 balance sheet included the following information. Total assets = $325,000,000. Total liabilities = $200,000,000. Total stockholders' equity = $125,000,000. Stockholders' equity consisted of the following four items.

7%, noncumulative preferred stock, $100 par, 300,000 shares issued - $30,000,000

Common stock, $1 par, 20,000,000 shares issued - $20,000,000

Additional paid-in capital, common stock - $46,000,000

Retained earnings - $29,000,000

Dividends were paid to preferred stock in all previous years except for two years. Total dividends declared and paid in the current year ended April 30 were $8,000,000.

Calculate the total dollar amount of dividends paid to preferred stockholders and common stockholders in the current year ended April 30.

a. Preferred dividends = $2,100,000. Common dividends = $5,900,000.

b. Preferred dividends = $4,200,000. Common dividends = $3,800,000.

c. Preferred dividends = $6,300,000. Common dividends = $1,700,000.

d. Preferred dividends = $8,000,000. Common dividends = $0.