Table 13-2 Falcon Corporation Has 12,000 Shares of $5, Noncumulative Preferred Shares

Table 13-2
Falcon Corporation has 12,000 shares of $5, noncumulative preferred shares outstanding and 16,000 common shares outstanding. At the end of the current year, Falcon Corporation declares a dividend of $120,000.
-Refer to Table 13-2.How is the dividend allocated between preferred and common shareholders?

A) $12,000 to preferred, $108,000 to common
B) $80,000 to preferred, $40,000 to common
C) $60,000 to preferred, $60,000 to common
D) $40,000 to preferred, $80,000 to common