Soho company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts are distributed as dividends.

Year 1 $25,000

Year 2 $50,000

Year 3 $90,000

Determine the dividends per share for preferred and common stock for the third year:

1. $1.25, and $0.45

2. $2.25, and $0.45

3. $0, and $0.45

4. $2.00, and $0.45

5. None of the above.