Parkway Corporation has $200,000 of 6%, preferred stock outstanding which carries a cumulative dividend preference. Parkway also has 10,000 shares of $1 par value common stock outstanding. In the company's first year of operations, no dividends were paid. During the second year, Parkway paid cash dividends of $18,000. The dividend should be distributed as follows:
a) $12,000 preferred; $6,000 common.
b) $8,000 preferred; $10,000 common.
c) $0 preferred; $18,000 common.
d) $18,000 preferred; $0 common.