Outstanding stock of the Larson Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par noncumulative preferred stock. In 2013, Larson declared and paid dividends of $4,000. In 2014, Larson declared and paid dividends of $12,000. How much of the 2014 dividend was distributed to preferred shareholders?

a. $6,000

b. $7,000

c. $5,000

d. None of these answer choices are correct