E 20-2B (LO2) DIVIDEND ALLOCATIONS Situation 1 Espino Company has the following stock outstanding: Common Stock 100,000 shares S0.50 par value The amount available for dividends this year is $50,000. Prepare the dividend alloca- tion between the preferred and common shares. Situation 2 Chiola Corporation has the following stock outstanding: Common Stock 40,000 shares S1 par value Situation 2. Div. per share, common: $0 75 Preferred Stock 9,000 shares $20 par, $2 dividend Preferred Stock Cumulative: 4,000 shares $40 par, S2 dividend Noncumulative: 5,000 shares $40 par, S2 dividend No dividends were declared in year 1 of operation. In year 2, there is $56,000 avail- able for dividends. Prepare the dividend allocation between the preferred and common shares