At December 31, 2019, the records of Hoffman Company reflected the following balances in the shareholders' equity accounts: Common shares: par $12 per share; 40,000 shares outstanding Preferred shares: 8 percent; par $10 per share; 6,000 shares outstanding Retained earnings: $220,000 On January 1, 2020, the board of directors was considering the distribution of a $62,000 cash dividend. No dividends were paid during 2018 and 2019. 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: 1-a. The preferred shares are non-cumulative. (Round your per share amount to 2 decimal places.) Paid to preferred shareholders Total $ 5,400 Per Share Paid to common shareholders 1-b. The preferred shares are cumulative. (Round your per share amount to 2 decimal places.) Paid to preferred shareholders Paid to common shareholders Total Per Share 2. Why were the dividends per common share less for the second assumption? O The total dividend amount and dividends per share of common shares were less under the second assumption because the dividend rate for preferred shareholders was increased. O The total dividend amount and dividends per share of common shares were less under the second assumption because the dividends in arrears on the preferred shares had to be fulfilled before dividends could be paid for the current year.