A Company Has $100,000 of 10% Noncumulative,nonparticipating,preferred Stock Outstanding and $150,000

Essay

A company has $100,000 of 10% noncumulative,nonparticipating,preferred stock outstanding and $150,000 of common stock outstanding.In the company's first year of operation,it paid no dividends,but during the second year,it paid cash dividends of $25,000.Compute the dividends to be distributed to (1) preferred shares and (2) common shares.