Churchill Corporation has the following stock outstanding:

Preferred stock (6%, $20 par value, 40,000 shares) . . . . . . . . . . . . . . . . . . . . . . . . . $800,000

Common stock ($2 par value, 400,000 shares). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000

For the two independent cases that follow, compute the amount of dividends that would be paid to preferred and common shareholders. Assume that total dividends paid are $200,000. No dividends have been paid for the past three years.

Case A, Preferred is noncumulative.

Case B, Preferred is cumulative