Martinez Companys ledger shows the following balances on December 31, 2012.

preferred stock (5%; $10 par value, outstanding 20,000 shares: $200,000) common stock ($100 par value, outstanding 30,000 shares: $3,000,000) retained earnings: 630,000 Assuming that the directors decide to declare total dividends in the amount of $266,000, determine how much each class of stock should receive under each of the conditions stated below. one years dividends are in arrears on the preferred stock.

Solution:

(a). the preferred stock is cumulative and fully participating.

(b). the preferred stock in noncumulative and non-participating.

(c). the preferred stock in noncumulative and is participating.

d. The preferred stock is cumulative and nonparticipating.

Please show all work