A company has two classes of stock issued: common and preferred. There are 5,000 shares of $100 par value, 8% cumulative preferred stock.The company has declared and paid the following dividends in the past 4 years:
2001, $50,000
2002, $0
2003, $65,000
2004, $10,000
What is the amount of dividends in arrears at the end of 2004 for preferred shareholders? Assume there were no dividends in arrears from years prior to 2001.