Common Stock ($1 par value; 20,000,000 shares authorized; 4,000,000 shares issued and outstanding)	$4,000,000
7% Preferred stock ($30 par value; 1,000,000 shares authorized; 400,000 shares issued and outstanding)	12,000,000
Additional paid-in capital on common stock	17,000,000
Retained earnings	35,000,000
Total Stockholders Equity	$68,000,000

Simpson declares dividends on common and preferred stock annually. On 12/23/2020, Simpson declares the annual dividend of $1,500,000 to shareholders of record on 12/31/2020, to be paid 1/5/2021.

Required: Determine the total amount of the dividend that is allocated to common and preferred shareholders. You must show your work.