Distribute dividend between preferred and common shareholders. (LO 2)

In 2006, the board of directors of Tasty Bakery Corporation declared total dividends of \(\$ 40,000\). The company has 2,000 shares of \(6 \%, \$ 100\) par, preferred stock. There are no dividends in arrears. How much of the \(\$ 40,000\) will be paid to the preferred shareholders? How much will be paid to the common shareholders?