The following information is provided for Bold Company for the year 2019:

• 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 (20162018)
• Total dividends declared and paid in 2019 were $65,000.

How much of the 2019 dividend payment was paid to the preferred stockholders assuming the preferred stock is cumulative?

Multiple Choice

• $40,000.

• $10,000.

• $55,000.

• $25,000.