Elaine Company has 2.000 shares of 90-cent ($0.90) cumulative preferred and 10,000 common shares outstanding. The previous year, the company paid total dividends of $1,000. The amount that must be paid to the preferred shareholders in the current year before any dividend is paid to common shareholders is: 1) $2,250 2) $2,600 3) $1,250 4) $0