5 points eBookHintPrintReferencesCheck my workCheck My Work button is now enabledItem 1 QS 11-12 (Algo) Dividend allocation between classes of shareholders LO C2 Stockholders equity of Ernst Company consists of 84,000 shares of $5 par value, 10% cumulative preferred stock and 300,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the companys inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $145,000 cash dividend