Slickers,Inc.had the Following Capital Structure During 2010

Multiple Choice

Slickers,Inc.had the following capital structure during 2010:
Preferred stock,7%,$50 par value,1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009.
Common stock,$100 par value,2,000 shares issued and outstanding.
The total dividends declared and paid during 2010 totaled $25,000.How much of the dividend is paid to the preferred stockholders during 2010 assuming the preferred stock is cumulative?

A) $3,500
B) $7,000
C) $10,500
D) $14,500