Stars,IncHas Declared a $20,000 Cash Dividend to Shareholders

Stars,Inc.has declared a $20,000 cash dividend to shareholders.The company has 5,000 shares of $15-par,10% preferred stock and 10,000 shares of $20-par common stock.The preferred stock is cumulative.How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $8,000 in arrears?

A) $15,500 preferred,$4,500 common
B) $8,000 preferred,$12,000 common
C) $7,500 preferred,$12,500 common
D) $20,000 preferred,$0 common