Xtreme Sports has $100,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $30,000. This dividend should be distributed as follows:

$7,500 preferred; $22,500 common.

$0 preferred; $30,000 common.

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

$16,000 preferred; $14,000 common.

$8,000 preferred; $22,000 common.