Marta Co.'s ledger shows the following balances on December 31, 2015: Preferred stock (5%; $10 par, outst. 20,000 shares) $200K Common Stock ($100 par, outst. 30,000 shares) $3M Retained Earnings $630K Dividends are declared for a total of $266K. One year of preferred dividends are in arrears. a) Preferred stock is noncumulative and nonparticipating b) Preferred stock is cumulative and fully participating c) Preferred stock is noncumulative and participating in excess of a 7% dividend rate on common stock.