Ultimate Sportswear has $170,000 of 10% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $570,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $37,000. This dividend should be distributed as follows: a. $8,000 preferred, $22,000 common
b. $16,000 preferred, $14,000 common
c. $7,500 preferred, $22,500 common
d. $15,000 preferred, $15,000 common
e. $0 preferred, $30,000 common