X Company has 1,000 of $1.20 noncumulative, preferred shares outstanding issued at $10 per share. also has $90,000 stated value of common shares outstanding. In X's first year of operation no dividends were paid, but during the second year X paid dividends of $14,000. The dividend should be distributed as follows: 1) $1,200 preferred: $12,800 common. 2) $2,400 preferred: $11,600 common. 3) $2,480 preferred: $11,520 common. 4) $1,400 preferred; $12,600 common. 5) $7,000 preferred: $7,000 common