For all of 2019 and 2020, Gentry had the following stock issued and outstanding: Preferred: 7,000 shares, 5%, $50 par value per share Common: 8,000 shares, $20 par value per share For 2020, Gentry declared a dividend of $40,000. For 2019, Gentry paid a preferred dividend of $2,000. Required: (1) For each of the three independent cases below, find how the $40,000 dividend for 2020 is payable to preferred and common shareholders. Use a format similar to that provided for E15-22 in the course packet. Show calculations below each case. (2) Discuss how your answer to 1(b) would change if there were 1,000 common treasury shares in addition to the 8,000 common shares outstanding. 1.a Preferred is cumulative and nonparticipating. Dividends in arrears Current year's dividend Remainder to common Totals Preferred Common 1.b Preferred is noncumulative but is fully participating. Preferred Dividends in arrears Current year's dividend Participating dividend Totals Common Total Total 1.c Preferred is cumulative and fully participating. Dividends in arrears Current year's dividend Participating dividend Totals Preferred Common Total 2 Discuss how your answer to 1(b) would change if there were 1,000 common treasury shares in addition to the 7,000 preferred and 8,000 common shares outstanding.