SFC has outstanding 50,000 shares of noncumulative, 5 percent, $100 par-value preferred stock and 100,000 shares of no-par-value common stock.
1. During 20X1, the corporation distributed dividends of $250,000. What amount will be paid on each share of preferred stock? What amount will be paid on each share of common stock?
2. During 20X2, the corporation distributed dividends of $750,000. How much will be paid on each share of preferred stock? How much will be paid on each share of common stock?