Torino Company has 1,900 shares of $50 par value, 5.5% cumulative and nonparticipating preferred stock and 19,000 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:

$5,000.

$225.

$10,450.

$5,450.

$5,225.