Soltech Company’s balance sheet shows the following stockholders’ equity section.

Required

1. Determine the par values of the corporation’s preferred stock and its common stock.

2. If two years’ preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $100,000, compute the total amount paid to 

(a) Preferred shareholders and

(b) Common shareholders.

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Preferred stock-8% cumulative, $_ par value, 1,500 shares authorized, issued, and outstanding.... $ 375,000 Common stock-$ par value, 18,000 shares authorized, issued, and outstanding ... 900,000 ..... Retained earnings... 1,125,000 Total stockholders' equity $2,400,000