An entity has 10000 shares of $11 cumulative preferred shares outstanding and 58000 common shares outstanding. As of the beginning of this fiscal year, there were 2 years' dividends in arrears on the preferred shares. The board of directors wants to give the common shareholders a $3 dividend per share at the end of this fiscal year. The total dividends to be declared by the entity are:

a. $284000 b. $504000 c. $394000 d. $174000