A company has 1,200 shares of $10 par value, 5.5% cumulative and nonparticipating preferred stock and 12,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: A)$1,320. B)$160. C)$820. D)$660. E)$500