Sweet Companys outstanding stock consists of 1,200 shares of cumulative 4% preferred stock with a $100 par value and 11,200 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,200 Year 2 $ 7,200 Year 3 $ 38,000 The amount of dividends paid to preferred and common shareholders in year 3 is:

$4,000 preferred; $34,000 common.

$4,800 preferred; $33,200 common.

$14,400 preferred; $23,600 common.

$38,000 preferred; $0 common.

$0 preferred; $38,000 common.