Fargo Company's outstanding stock consists of 850 shares of noncumulative 5% preferred stock with a $10 par value and 4,600 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividend Declared
year 1	$	32,000
year 2	$	4,000
year 3	$	41,000

The amount of dividends paid to preferred and common shareholders in year 1 is:

Multiple Choice

• $425 preferred; $31,575 common.

• $8,500 preferred; $23,500 common.

• $27,2500 preferred; $4,750 common.

• $16,000 preferred; $16,000 common.

• $32,000 preferred; $0 common.