The Klemay Corporation had the following preferred and common shares outstanding throughout fiscal year 2017:

Preferred stock4%, $10 par, 500 shares outstanding $ 5,000

Common stock$1 par, 6,000 shares outstanding 6,000

The preferred stock is cumulative and nonparticipating. A total dividend of $660 is declared for 2017. Preferred dividends were last paid, in full, for 2014. The dividend should be distributed as:

Preferred Common

a) $200 $460

b) $409 $251

c) $627 $ 33

d) $600 $ 60

e)none of the above

Can you someone help me with this question? the answer key says the answer is d) preferred=$600 and common=$60. Can you someone explain to me why? show your work please and thanks in advance!