Sweet Companys outstanding stock consists of 2,000 shares of cumulative 4% preferred stock with a $100 par value and 11,000 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. Dividend Declared year 1 $ 3,000 year 2 $ 7,000 year 3 $ 37,000

The amount of dividends paid to preferred and common shareholders in year 3 is:

Multiple Choice

$14,000 preferred; $23,000 common.

$8,000 preferred; $29,000 common.

$24,000 preferred; $13,000 common.

$37,000 preferred; $0 common.

$0 preferred; $37,000 common.