Classics Incorporated had the following outstanding when the company's board of directors declared a $125,000 cash dividend during the current year. Preferred stock, $50 par, 5%, 7,000 shares issued Common stock, $10 par, 55,000 shares issued Total $350,000 550,000 $900,000 Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are two years in arrears.