Circle Q Technologies declared a cash dividend of $340,000 on April 1, 2011. The firm has 3,600 shares of 8% cumulative, fully participating, $100 par preferred stock outstanding. They also have 41,000 shares of $21 par common stock issued, with 1,000 shares of treasury stock. Dividends on the preferred stock are in arrears two years.
A. Calculate the amount of dividends assigned to the common and the preferred stock, respectively. B. Assume that the preferred stock participates up to a maximum of 10%. Calculate the amount of dividends assigned to the common and the preferred stock, respectively.