. Dividends Review Problem Red Corporation's December 31, 2015 Shareholders' Equity consists of the following: $200,000 of S1 par common stock $400,000 of $40 par value, 6% cumulative, nonparticipating preferred stock $3,000,000 of retained earnings Red's board of directors declared cash dividends of $40,000 in 2016, $20,000 in 2017, and $50,000 in 2018. 1.) What amount of dividends will be paid to common and preferred shareholders each year? Preferred Common 2016: 2017: 2018