At October 1, Arcade Fire Enterprises reported stockholders' equity of $35,000. During October, common stock of $2,000 was issued and the company earned net income of $7,000. If stockholders' equity at October 31 totals $40,000, what amount of dividends were paid during the month?

A. $0
B. $2,000
C. $4,000
D. $5,000

Answer: C. $4,000