A corporation was formed January 1, Year 1 when the firm issued 10,000 shares of its $25 par value common stock for $350,000. On the same date the firm issued 1,000 shares of its 10% preferred shares for $100,000. The preferred shares have a par value of $100 per share. The preferred shares are cumulative and participating. The coporation had Net Income in Year 1 of $250,000. The firm declared and paid no dividends of any sort in Year 1. In Year 2, the firm had Net Income of $300,000. On December 31, Year 2, the firm declared and paid a $100,000 cash dividend. On January 1, Year 3, the firm declared and distributed a 15% common stock dividend when the fair market value was $50 per share. In Year 3, the firms Net Income was $500,000. On January 1, Year 4, the firm declared and distributed a 50% common stock dividend when the fair market value per share was $60. On December 31, Year 4, the firm declared and paid a cash dividend of $200,000. The firm's Net Income for Year 4 was $400,000.

How much money would the common shareholders receive from the cash dividend declared and paid on December 31, Year 2?

Considering both the common stock dividend in Year 3 and the firm's Net Income for Year 3, what is the net change in the firm's Retained Earnings account during Year 3?

How much cash would be given to the preferred shareholders out of the cash dividend declared and paid on December 31, Year 4?