Potter Company has outstanding 15,000 shares of $50 par value, 8% preferred stock, and 50,000 shares of $5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $280,000 in the second year, and $60,000 in the third year.

a. If the preferred stock is cumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.

b. If the preferred stock is noncumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.

c. How should each type of preferred dividends be treated in calculating EPS?