Torino Company has 1,600 shares of $50 par value, 7.5% cumulative preferred stock and 16,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $5,000 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

$1,000.

$6,000.

$12,000.

$7,000.

$5,000.