Step-by-step explanation:
The total amount of dividends to be paid to the preferred stockholders for both years can be calculated as follows:
Dividends for 2019: $50 par value * 5% dividend rate * 2800 shares = $7000
Dividends for 2020: $50 par value * 5% dividend rate * 2800 shares = $7000
Since the preferred stock is cumulative, any unpaid dividends from 2019 must also be paid in 2020 before any dividends can be paid to the common stockholders. The total amount of dividends to be paid to the preferred stockholders for 2020 is:
$7000 (unpaid dividends from 2019) + $7000 (dividends for 2020) = $14,000
The remaining amount of dividends available for the common stockholders can be calculated as follows:
$21,300 (total dividends declared and paid in 2020) - $14,000 (dividends paid to preferred stockholders) = $7,300
Therefore, the dividends received by the common stockholders in 2020 is $7,300. Answer: $7000.