Torino Company's outstanding stock consists of 550 shares of noncumulative 5% preferred stock with a $10 par value and 4,000 shares common stock with a $1 par value. During the first three years of operation, Torino declared and paid the following total cash dividends. Dividends Declared & Paid $29,000 $ 7,000 $38,000 year 1 year 2 year 3 The amount of dividends paid to preferred and common shareholders in year 1 is: Multiple Choice $275 preferred: $28,725 common $5.500 preferred: $23,500 common Multiple Choice $275 preferred; $28,725 common $5,500 preferred: $23,500 common. $22,7500 preferred: $6,250 common. $14,500 preferred: $14,500 common $29,000 preferred: $0 common