Exercise 10-74 Cumulative Preferred Dividends

Capital stock of Barr Company includes:

Common stock, $5 par, 650,000 shares outstanding	$3,250,000
Preferred stock, 15% cumulative, $60 par, 10,000 shares outstanding	600,000

As of December 31, 2018, 2 years' dividends are in arrears on the preferred stock. During 2019, Barr plans to pay dividends that total $360,000.

Required:

1. Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in 2019.

Total dividend to preferred stockholders	$ Fill in blank
Total dividend to common stockholders	$ Fill in blank

2. If Barr paid $280,000 of dividends, determine how much each group of stockholders would receive.

Total dividend to preferred stockholders	$270,000
Total dividend to common stockholders	$fill in the blank