Exercise $10-74($Algorithmic$)$

Cumulative Preferred Dividends

Capital stock of Barr Company includes:

Common stock, $$5$ par, $650,000$ shares outstanding

$$3,250,000$

Preferred stock, $15\%$ cumulative, $$60$ par, $10,000$ shares outstanding

$600,000$

As of December $31,2018,2$ years' dividends are in arrears on the preferred stock. During $2019,$ Barr plans to pay dividends that total $$256,000.$

Required:

If an answer is zero, enter $"0".$

Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in $2019.$

Total dividend to preferred stockholders $$

Total dividend to common stockholders

$2.$ If Barr paid $$292,000$ of dividends, determine how much each group of stockholders would receive.

Total dividend to preferred stockholders

Total dividend to common stockholders

$$

$