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Written Inc has outstanding 600,000 shares of $2 par common stock and 120,000 shares of...

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Accounting

Written Inc has outstanding 600,000 shares of $2 par common stock and 120,000 shares of no par 6% preferred stock with a stated value of $5. Dividends have been paid in every year except for the past two years and the current year.

Assuming that $270,000 will be distributed, and the preferred stock is cumulative and participating, how much will the common stockholders receive?

a) $162,000

b) $132,000(answer)

c) $138,000

d) $72,000

The answer is b)$132,000 from key answer but can someone show me how? show your work please and thanks in advance!

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