E15.5 (LO 2, 4) (Preferred Dividends) The outstanding share capital of Meadowcrest Corporation consists of 3,000 preferred shares and 7,000 common shares for which $280,000 was received. The preferred shares carry a dividend of $7 per share and have a $100 stated value. Instructions Assuming that the company has retained earnings of $95,000 that is to be entirely paid out in dividends and that preferred dividends were not paid during the two years preceding the current year, state how much each class of shares should receive under each of the following conditions