Marlin, Inc No Dividends Were Declared or Paid During the Prior Year

Essay

Marlin, Inc., declared a cash dividend of $40,000 in 2013 when the following stocks were outstanding: $\begin{array}{ll}\text {Common stock 20,000 shares, par \$ 15 }&\$300,000\\\text {Preferred stock, \( 6 \%, 2.500 \) shares, par \$ 10 }&25,000\\\end{array}$
No dividends were declared or paid during the prior year. Compute the amount of cash that would be paid to each stockholder group under each of the following separate cases.