Dividends for Preferred and Common Stock The Stockholders’ Equity category of Rausch Company’s balance sheet as of December 31, 2008, appeared as follows:

The notes to the financial statements indicate that dividends were not declared or paid for 2006 or 2007. Rausch wants to declare a dividend of $118,000 for 2008.
Required Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions:
1. The preferred stock is noncumulative, nonparticipating.
2. The preferred stock is cumulative, nonparticipating.

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Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding Common stock, $10 par, 40,000 shares issued and outstanding Additional paid-in capital Total contributed capital Retained earnings Total stockholders' equity $ 200,000 400,000 500,000 $1,100,000 900,000 $2,000,000