Capital stock of Barr Company includes:
Common stock, $5 par, 650,000 shares outstanding .............................. $3,250,000
Preferred stock, 15% cumulative, $60 par, 10,000 shares outstanding ............ 600,000
As of December 31, 2018, 2 years' dividends are in arrears on the preferred stock. During 2019, Barr plans to pay dividends that total $360,000.
Required:
1. Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in 2019.
2. If Barr paid $280,000 of dividends, determine how much each group of stockholders would receive?