Problem:
Winters Corporation has outstanding 1,000 shares of noncumulative preferred stock and 2,000 shares of common stock. The preferred stock is entitled to an annual dividend of USD 100 per share before dividends are declared on common stock.
Required:
Question: What are the total dividends received by each class of stock if Winters Corporation distributes USD 280,000 in dividends in 2010?
Note: Please show the work not just the answer.