Halverstein Company's outstanding stock consists of 8,750 shares of cumulative 5% preferred stock with a $10 par value and 3,750 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 Year 2 Year 3 $ 7,500 $ 34,000 The amount of dividends paid to preferred and common shareholders in Year 2 is: O $3,750 preferred; $3,750 common. O $7,500 preferred; $0 common. $5,250 preferred; $2,250 common. $0 preferred; $7,500common. $4,375 preferred; $3,125 common