Halverstein Company's outstanding stock consists of 8,750 shares of cumulative 5% preferred stock with a $10 par value and 3,750 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 $ 0 Year 2 $ 7,500 Year 3 $ 34,000 The amount of dividends paid to preferred and common shareholders in Year 2 is: