Dividends for Preferred and Common Stock The Stockholders’ Equity category of Rausch Company’s balance sheet as of December 31, 2010, appeared as follows:

Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding $ 200,000 Common stock, $10 par, 40,000 shares issued and outstanding 400,000 Additional paid-in capital 500,000 Total contributed capital $1,100,000 Retained earnings 900,000 Total stockholders’ equity $2,000,000 The notes to the fi nancial statements indicate that dividends were not declared or paid for 2008 or 2009. Rausch wants to declare a dividend of $118,000 for 2010.

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.

AppendixLO1