Ultimate Sportswear has $110,000 of 9% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $510,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $31,000.

This dividend should be distributed as follows:

Multiple Choice

$15,500 preferred; $15,500 common.

$0 preferred; $31,000 common.

$9,900 preferred; $21,100 common.

$16,000 preferred; $15,000 common.

$7,750 preferred; $23,250 common.