1. BMW Corporation was organized in January 2014 and issued shares of preferred and common stock as shown. As of December 31, 2018, there have been no changes in outstanding stock.

Preferred stock (12%, $13 par, 20,000 shares issued and outstanding) $260,000

Common stock ($30 par, 17,000 shares issued and outstanding) 510,000

For each of the following independent situations, compute the amount of dividends that would be paid for each class of stock in 2017 and 2018. Assume that total dividends of $21,000 and $148,000 are paid in 2017 and 2018, respectively.

1. Preferred stock is noncumulative.

2. Preferred stock is cumulative, and no dividends are in arrears in 2017.

3. Preferred stock is cumulative, and no dividends have been paid during 2014 to 2016.