At December 31, 2016, the records of Hoffman Company reflected the following balances in the shareholders' equity accounts:

Common shares: par $13 per share; 50,000 shares outstanding

Preferred shares: 9 percent; par $10 per share; 7,500 shares outstanding

Retained earnings: $225,000

On January 1, 2017, the board of directors was considering the distribution of a $67,500 cash dividend. No dividends were paid during 2015 and 2016.

Required:

Determine the total and per-share amounts that would be paid to the common shareholders and to the preferred shareholders under two independent assumptions:

-a.The preferred shares are non-cumulative.

Find the total amount paid to common stock holders?