A Corporation Has 15,000 Shares of 10%,$50 Par Cumulative Preferred

A corporation has 15,000 shares of 10%,$50 par cumulative preferred stock outstanding and 25,000 shares of no-par common stock outstanding.Dividends of $37,500 are in arrears.At the end of the current year,the corporation declares a dividend of $120,000.How is the dividend allocated between preferred and common stockholders?

A) The dividend is allocated $7,500 to preferred stockholders and $112,500 to common stockholders.
B) The dividend is allocated $112,500 to preferred stockholders and $7,500 to common stockholders.
C) The dividend is allocated $120,000 to preferred stockholders and no dividend is paid to common stockholders.
D) The dividend is allocated $75,000 to preferred stockholders and $45,000 to common stockholders.