Preferred stock, $100 par, 8%, 1,000 shares issued and outstanding: $100,000 Common stock, $10 par, 20,000 shares issued and outstanding: $200,000 Additional paid-in capital: $250,000 Total contributed capital: $550,000 Retained earnings: $450,000 Total stockholders’ equity: $1,000,000 The notes to the financial statements indicate that dividends were not declared or paid for 2014 or 2015. Greenbaum wants to declare a dividend of $59,000 for 2016. Required: Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions: 1.The preferred stock is noncumulative, nonparticipating.
2.The preferred stock is cumulative, nonparticipating.