A Corporation Has 20,000 Shares of 17%,$50 Par Cumulative Preferred

A corporation has 20,000 shares of 17%,$50 par cumulative preferred stock outstanding and 25,000 shares of no-par common stock outstanding.Dividends of $36,000 are in arrears.At the end of the current year,the corporation declares a dividend of $208,000.How is the dividend allocated between preferred and common stockholders?

A) The dividend is allocated $2,000 to preferred stockholders and $206,000 to common stockholders.
B) The dividend is allocated $206,000 to preferred stockholders and $2,000 to common stockholders.
C) The dividend is allocated $208,000 to preferred stockholders and no dividend is paid to common stockholders.
D) The dividend is allocated $170,000 to preferred stockholders and $38,000 to common stockholders.