Baltic Corporation had the following shares outstanding when the board of directors declared aDividend Distribution

Baltic Corporation had the following shares outstanding when the board of directors declared a

$$100,000$ cash dividend:

Required:

$(1)$ Allocate the dividend between the preferred and common shareholders assuming the preferred

shares are cumulative and one year in arrears.

$(2)$ Allocate the dividend between the preferred and common shareholders, assuming the preferred

shares are non$-$cumulative and that no dividend was paid last year.

$$100,000$ cash dividend:

Contributed Capital

$$3,$ Preferred Shares, $10,000$ shares issued and outstanding $$250,000$

Common Shares, $50,000$ shares issued and outstanding $500,000$

Total Contributed Capital $ $750,000$

Required:

$(1)$ Allocate the dividend between the preferred and common shareholders assuming the preferred

shares are cumulative and one year in arrears.

$(2)$ Allocate the dividend between the preferred and common shareholders, assuming the preferred

shares are non$-$cumulative and that no dividend was paid last year.