DIVISION OF DIVIDENDS PROBLEM

Martin Co was formed on Jan, 1 of 2020. It issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31 it declared the following cash dividends: 2020, $5,000; 2021, $12,000; 2022, $28,000.

Which class of stock gets how much if:

A) The preferred stock is 6%, noncumulative

b) The preferred stock is 7%, cumulative