Tapin Inc. has 2,500 shares of its $1.75 preferred shares outstanding. Dividends for 2012 and 2013 are

Question:

Tapin Inc. has 2,500 shares of its $1.75 preferred shares outstanding. Dividends for 2012 and 2013 are in arrears. Assume that Tapin Inc. declares total dividends of $35,000 at the end of 2014. Show how to allocate the dividends to preferred and common
(a) if preferred is cumulative, and
(b) if preferred is noncumulative.