Holiday.com prepared the following stockholders’ equity section as of December 31, 2010.

Answer the following questions about Holiday.com’s dividends:
1. How much in dividends must Holiday.com declare each year before the com¬ mon stockholders get any cash dividends for the year?
2. Suppose Holiday.com declares cash dividends of \($20,000\) for 2010. How much of the dividends goes to preferred? How much goes to common?
3. Is Holiday.com’s preferred stock cumulative or noncumulative? How can you tell?
4. Suppose Holiday.com passed the preferred dividend in 2011 and 2012. In 2013, the company declares cash dividends of \($9,000.\) How much of the dividends goes to preferred? How much goes to common?

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Paid-in Capital: Stockholders' Equity Preferred Stock, 5%, $100 par, 5,000 shares authorized, 400 shares issued and outstanding Common Stock, $10 par, 20,000 shares authorized, 5,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders' Equity $ 40,000 50,000 70,000 $160,000 90,000 $250,000