Cumulative Preferred Dividends

Capital stock of Barr Company includes:

Common stock, $5 par, 640,000 shares outstanding $3,200,000

Preferred stock, 15% cumulative, $50 par, 12,000 shares outstanding 600,000

As of December 31, 2024, 2 years' dividends are in arrears on the preferred stock. During 2025, Barr plans to pay dividends that total $390,000.

Required:

1. Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in 2025.

Total dividend to preferred stockholders $_____

Total dividend to common stockholders $______

2. If Barr paid $283,000 of dividends, determine how much each group of stockholders would receive.

Total dividend to preferred stockholders $______

Total dividend to common stockholders $______