The shareholders’ equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $8 million, $20 million, and $150 million in its first three years of operation—2024, 2025, and 2026, respectively.

Required:
1. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating.

2. Repeat requirement 1 assuming that the preferred stock is noncumulative and nonparticipating.

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Common stock Paid-in capital-excess of par, common Preferred stock, 8% Paid-in capital-excess of par, preferred ($ in millions) $100 980 200 555