The following information is provided for Bold Company for the year 2017:

• Preferred stock, 8%, $50 par value, 2,500 shares issued and outstanding
• Common stock, $100 par value, 3,500 shares issued and outstanding
• Dividends in arrears for three prior years (20142016)
• Total dividends declared and paid in 2017 were $65,000.

How much of the 2017 dividend payment was paid to the preferred stockholders assuming the preferred stock is cumulative?

$40,000.

$10,000.

$55,000.

$25,000.