Halverstein Company's outstanding stock consists of 8,400 shares of cumulative 5% preferred stock with a $10 par value and 3,600 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	$	0
Year 2	$	7,200
Year 3	$	33,000

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

Multiple Choice

• $4,200 preferred; $3,000 common.

• $3,600 preferred; $3,600 common.

• $0 preferred; $7,200common.

• $7,200 preferred; $0 common.

• $5,040 preferred; $2,160 common.