Corporation:

Wilton Corporation has 5,000 shares of 6% cumulative, $100 par value, preferred stock outstanding and 175,000 shares of common stock outstanding. No dividends have been paid by the company since May 31, Year 4. For the year ended May 31, Year 6, Wilton had net income of $1.45 million and wishes to pay common shareholders a dividend equivalent to 25% of net income. The total amount of dividends to be paid by Wilton Corporation at May 31, Year 6, is

A) $362,500

B) $392,500

C) $407,500

D) $422,500