On December 31, 2020, the shareholders' equity of Finland Corporation shows the following:

Preferred shares$ 6, no par, 8,000 shares outstanding................. $ 400,000

Common sharesno par, 60,000 shares outstanding...................... 800,000

Retained earnings............................................................................. 240,000

Total shareholders' equity................................................................ $ 1,440,000

Assume that preferred dividends were last paid on December 31, 2018, and that all of the company's retained earnings are to be paid out in dividends on December 31, 2020.

Instructions

If the preferred shares are cumulative and fully participating, calculate:

1. The amount of dividend distributed to the preferred shareholders, and
2. The amount of dividend distributed to the common shareholders.

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