b$.$ The following accounts are taken from the ledger of Kookie Kola Corporation:

$10\%$ Preferred Stock, $-$ P$20$ par value;

$10,000$ shares authorized; $4,000$ shares issued

$80,000$

Common Stock $-$ P$50$ par value;

$5,000$ shares authorized;

$2,000$ shares issued

$100,000$

Retained Earnings

$50,000$

The board of directors declared a cash dividend of P$20,000$ for the year. No dividend was declared last year.

Compute the distribution of the cash dividend to preferred and common stock under each of the following independent assumptions:

a$.$ Preferred stock is non$-$cumulative and non$-$participating