Grimes & Dotson Ltd. did not pay dividends on its 4.5%, $100 par value cumulative preferred stock during 2018 or 2019. Since 2016, 70,000 shares of this stock have been outstanding. Grimes & Dotson Ltd. has been profitable in 2020 and is considering a cash dividend on its common stock that would be payable in December 2020. The amount of dividends that would have to be paid on the preferred stock before a cash dividend could be paid to the common stockholders is:

Multiple Choice

• $315,000.

• $945,000.

• $210,000.

• $1,575,000.