4. Samuel Corporation was organized on January 1, 2015. During its first year, the corporation issued

20,000 shares of $100 par value preferred stock and 100,000 shares of $50 par value common stock.

Samuel declared $60,000 of cash dividends in 2015, $80,000 of cash dividends in 2016, and $180,000

of cash dividends in 2017.

Required:

(a) Show the allocation of dividends to each class of stock for all three years, assuming the preferred

stock dividend is 4% and noncumulative.

(b) Show the allocation of dividends to each class of stock for all three years, assuming the preferred

stock dividend is 5% and cumulative.