Khandi Corporation pays dividends at the end of each year. The dividends that it paid for 20x6, 20x7, and 20x8 were $160,000, $120,000, and

$360,000, respectively. Calculate the total amount of dividends Khandi Corporation paid in each of these years to its common and preferred stockholders under both of the following capital structures: (1) 40,000 shares of $100 par, 6 percent noncumulative preferred stock and 120,000 shares of $10 par common stock; (2) 20,000 shares of $100 par, 7 percent cumulative preferred stock and 120,000 shares of $10 par common stock.
Khandi Corporation had no dividends in arrears at the beginning of 20x6.
Issuance of Stock