Torino Company has 2, 200 shares of $50 par value, 7.0% cumulative and nonparticipating preferred stock and 22,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $7, 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: $15, 400 $ 7, 900