The following elements of stockholders' equity are adapted from the balance sheet of Sanders Corporation.

Sanders Corporation paid no preferred dividends in 2016 but paid the designated amount of cash dividends per share to preferred shareholders in all prior years.
Requirements
Compute the dividends to preferred and common shareholders for 2017 if total dividends are $40,000 in 2017?

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Stockholders' Equity Preferred Stock, cumulative, $4 par (Note 7), 40,000 shares issued and outstanding Common Stock, $0.40 par, 115,000 shares issued and outstanding $ 160,000 600,000 Note 7. Preferred Stook: Designated annual cash dividend per share, S0.10.