. . 1. The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2020. Common stock, par$12 per share, 40,000 shares outstanding. Preferred stock, 8 percent, par $10 per share, 6,000 shares outstanding, Retained earnings, $220,000. On January 1, 2021, the board of directors was considering the distribution of a $62,000 cash dividend. No dividends were paid during 2017 and 2018, Required: Determine the total and per-share amounts that would be paid to the common shareholders and to the preferred stockholders under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. Preferre Common d 6,000 40,000 Shares Shares Total a Noncumulative: Preferred (560,000 x 8%) Balance to common Total $ 4,800 $ 4,800 $ 4,800 Per share Preferre Common d 6.000 40,000 Shares Shares Total b $ 4,800 Cumulative: Preferred, arrears Preferred, current year ($60,000 x 8%) Balance to common Total Per share $ 4,800