Outstanding Shares of the Colt Corporation Included 20,000 Ordinary Shares

Multiple Choice

Outstanding shares of the Colt Corporation included 20,000 ordinary shares with a $5 par and 5,000 shares of 4%, $10 par noncumulative preference shares. In 2013, Colt declared and paid dividends of $2,000. In 2014, Colt declared and paid dividends of $6,000. How much of the 2014 dividend was distributed to preference shareholders?

A) $3,000
B) $4,000
C) $2,000
D) None of these answer choices are correct.