The Kendo Corporation has 10 000 shares of 10%, 75 par value, cumulative preference shares outstanding and 50 000 shares of 5 par value ordinary shares outstanding. On 31 December 2013, there are two years' dividends in arrears on the preference shares. The board of directors declares an annual dividend of 500 000 at the end of 2014. Requirement: What are total dividends to be paid to preference shareholders?