An entity is authorized to sell 50,000 shares of $10 par, 6% cumulative preference shares and 100,000 shares of $7 par ordinary shares. There are 25,000 shares of preference shares outstanding and 60,000 shares of ordinary shares outstanding. A $40,000 cash dividend has been declared by the board of directors. There are no dividends in arrears. What is the total amount to be given to the preferred share holder? Select one: a. $30,000 b. $15,000 c. $25,000 d. $20,000