Torino Company has 1,100 shares of $20 par value, 5.0% cumulative and nonparticipating preferred stock and 11,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

$500

$2200

$600

$1700

$1100