Dividends for Preferred and Common Stock The Stockholders’ Equity category of Greenbaum Company’s balance sheet as of December 31, 2010, appeared as follows:

Preferred stock, $100 par, 8%, 1,000 shares issued and outstanding $ 100,000 Common stock, $10 par, 20,000 shares issued and outstanding 200,000 Additional paid-in capital 250,000 Total contributed capital $ 550,000 Retained earnings 450,000 Total stockholders’ equity $1,000,000 The notes to the fi nancial statements indicate that dividends were not declared or paid for 2008 or 2009. Greenbaum wants to declare a dividend of $59,000 for 2010.

Required Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions:

1. The preferred stock is noncumulative, nonparticipating.

2. The preferred stock is cumulative, nonparticipating.

AppendixLO1