Question - A Corporation has paid all required preferred dividends through 2009 December 31. Its outstanding stock consists of 10,000 shares $125 par value common stock and 6,000 shares of 5 percent, $135 par value preferred stock. During five successive years, the corporation's dividend declarations were as follows:
Year Amount
2010 $85,000
2011 52,500
2012 7,500
2013 15,000
2014 67,500
Compute the amount of dividends that would have been paid to each class of stock in each of the five years assuming the preferred stock is:
1. Cumulative.
2. Noncumulative.
You must show all computations.