Cableserve Inc. has the following outstanding shares:
15,000 shares, $5.40 cumulative preferred
35,000 shares, common
During 2014, the company declared and paid $180,000 in dividends. Dividends were in arrears for the previous year (2013) only. No new shares have been issued since the first year of operations.
1. What was the total amount paid to the preferred shareholders as dividends in 2014?
2. What was the total amount paid to the common shareholders as dividends in 2014?