Determine the amount of dividends to be paid to preferred and common shareholders, and the amount of dividend in arrears for 2018.

1. In late 2017, the Nicklaus Corporation was formed. The corporate charter authorized the issuance of 20,000,000 shares of common stock carrying a si par value, and 5,000,000 shares of $25 par value, 10% cumulative, nonparticipating preferred stock. On Dec 20, 2017, 15,000,000 shares of the common stock were issued in exchange for cash at an average price of $20 per share. Also on Dec 20, 2,000,000 shares of preferred stock were issued at $28 per share During 2018, the Nicklaus Corporation participated in the following transactions On March 30, 2018. Nicklaus reacquired 500,000 shares for the treasury at a price of $19 per share. On May 31, 2018, 200,000 treasury shares were sold at $21 per share On July 20, 2018. Nicklaus reacquired and retired 300,000 common shares at a price of S22 per share On August 31, 2018 100,000 treasury shares were sold at $23 per share On November 15, 2018, the board of directors of declared cash dividends of$2 million. Payment was scheduled for December 15, 2018, to common and preferred shareholders of record on November 1 2018 On December 18, 2018, Nicklaus declared a 5% stock dividend, payable on December 22, 2018, to common shareholders ofrecord on December 20. At the date of declaration, the common stock was selling in the open market at $25 per share On December 25, 2018, 100,000 treasury shares were sold at $24 per share On December 30, 2018, Nicklaus replaced its $1 par value common stock (all the authorized shares) with a new common stock having a $.50 par value. This represents a 2-for-1 stock split. That is, the shareholders received two shares of the S.50 par stock in exchange for each share of the $0.5 par stock they own. The $1 par stocks were collected and destroyed Net income for 2018 was $4,000,000 Note: Dividends are not paid on shares held in the treasury. Dividends are paid only on KK the shares outstanding KK Enter your answers in Thousands