Sabas Company Has 20,000 Shares of $100 Par, 2% Cumulative $\begin{array}{lr}\text { Year 1: } & \$ 10,000 \\\text { Year 2: } & 45,000 \\\text { Year 3: } & 90,000\end{array}$

Multiple Choice

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: $\begin{array}{lr}\text { Year 1: } & \$ 10,000 \\\text { Year 2: } & 45,000 \\\text { Year 3: } & 90,000\end{array}$
Determine the dividends per share for preferred and common stock for the third year.

A) $4.50 and $0.25
B) $3.25 and $0.25
C) $4.50 and $0.90
D) $2.00 and $0.25