Outstanding stock of the West Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 6%, $10 par non-cumulative preferred stock. In 2009, West declared and paid dividends of $2,000. In 2010, West declared and paid dividends of $6,000. How much of the 2010 dividend was distributed to preferred shareholders? A) $4,000. B) $7,000. C) $3,000. D) None of the above.
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