Xtreme Sports Has $100,000 of 8% Noncumulative,nonparticipating,preferred Stock Outstanding

Multiple Choice

Xtreme Sports has $100,000 of 8% noncumulative,nonparticipating,preferred stock outstanding.Xtreme Sports also has $500,000 of common stock outstanding.In the company's first year of operation,no dividends were paid.During the second year,Xtreme Sports paid cash dividends of $30,000.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.