Navid Corporation has 12,000 shares ($10 par value) of 12% cumulative, nonparticipating, preferred stock outstanding.

The company also has 120,000 shares ($5 par value) of common stock outstanding. In the company's first year of

operation, no dividends were declared and paid. During the second year, the company declared and paid cash dividends

of $30,600.

This dividend $30,600 of should be distributed as follows:

A) $24,000 preferred; $1,500 common.

B) $28,800 preferred; $1,800 common.

C) $7,500 preferred; $7,500 common.

D) $15,000 preferred; $0 common.

E) None of the above.