KTM Company has 20,000 shares of $100 par, 3% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $20,000 Year 2:45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year. O $60,000 $45,000 O $55,000 O $40,000 DLL