The stockholders' equity section of Lemay Corporation shows the following on December 31, 2011:
Preferred stock - 6%, 4,100 par, 4,000 shares outstanding $ 400,000
Common stock - $20 par, 60,000 shares outstanding 600,000
Paid-in capital in excess of par 200,000
Retained Earnings 114,000
Total stockholders' equity $1,314,000
Instructions:
Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/11 and preferred dividends were last paid on 12/31/09, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.