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Halverstein Company's outstanding stock consists of 7,350 shares of cumulative 5% preferred stock with a $10 par value and 3,150 shares of common stock with

Halverstein Company's outstanding stock consists of 7,350 shares of cumulative 5% preferred stock with a $10 par value and 3,150 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.

Dividends Declared & Paid
Year 1 $ 0
Year 2 $ 6,300
Year 3 $ 30,000

The amount of dividends paid to preferred and common shareholders in Year 2 is:

  • $4,410 preferred; $1,890 common.

  • $3,675 preferred; $2,625 common.

  • $6,300 preferred; $0 common.

  • $0 preferred; $6,300common.

  • $3,150 preferred; $3,150 common.

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