Fusion Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding at December 31, 2014. At December 31, 2014, the company declared a

$105,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.

1 The preferred stock is noncumulative, and the company has not missed any dividends in previous years.

2 The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years.

3 The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years.

AppendixLO1