Beckham Corporation Has 3,000 Shares of $100 Par Value, 7

Multiple Choice

Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 2006, $10,500; 2007, $0; 2008, $65,000; 2009, $30,000; 2010, $15,000. The amount of dividends in arrears at the end of 2007 was

A) $0.
B) $10,500.
C) $17,500
D) $31,500.