Horizon Communications has the following stockholders’ equity:

Requirement

1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2010 and 2011 if total dividends are \($15,000\) in 2010 and \($50,000\) in 2011.

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Paid-in Capital: Horizon Communications Stockholders' Equity Preferred Stock, 8%, $10 par, 100,000 shares authorized, 20,000 shares issued and outstanding Common Stock, $0.50 par, 500,000 shares authorized, 300,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders' Equity $ 200,000 150,000 600,000 $ 950,000 150,000 $1,100,000