Burnell, Inc. has 5,000 shares of 4%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2016, and December 31, 2015. The board of directors declared and paid a $8,000 dividend in 2016. In 2017, $30,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2017?

Preferred Common

a. $18,000 $12,000

b. $15,000 $15,000

c. $12,000 $18,000

d. $10,000 $20,000

The correct answer is c, why is it so? Thank you!