The Stansbury Company has issued 10%, partially participating, cumulative preferred stock with a total par value of $200,000 and common stock with a total par value of $800,000. The preferred stock participates up to 15% of its par value. No dividends are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $160,000 are distributed?

A. $32,000 to preferred and $128,000 to common

B. $20,000 to preferred and $140,000 to common

C. $30,000 to preferred and $130,000 to common

D. $50,000 to preferred and $110,000 to common