Exercise 10-57 (Algorithmic) Cumulative Preferred Dividends Capital stock of Barr Company includes: Common stock, $5 par, 650,000 shares outstanding Preferred stock, 15 percent cumulative, $60 par, 10,000 shares outstanding $3,250,000 600,000 As of December 31, 2010, two years' dividends are in arrears on the preferred stock. During 2011, Barr plans to pay dividends that total $210,000. 1. Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in 2011. Total dividend to preferred stockholders 4 Total dividend to common stockholders 2. If Barr paid $361,000 of dividends, determine how much each group of stockholders would receive. Total dividend to preferred stockholders A Total dividend to common stockholders A