Otter Tail, Inc., began operations in January 2015 and had the following reported net income or loss for each of its 5 years of operations:

2015 $ 150,000 loss

2016 $ 130,000 loss

2017 $ 120,000 loss

2018 $ 250,000 income

2019 $ 1,000,000 income

At December 31, 2019, Otter Tail's capital stock was comprised of the following:

Common stock, $10 par (100,000 shares authorized; 50,000 shares issued and outstanding)		$500,000
Preferred stock, 4% noncumulative and nonparticipating, $100 par (1,000 shares authorized, issued, and outstanding)		100,000
Preferred stock, 8% cumulative and fully participating, $100 par (10,000 shares authorized, issued, and outstanding)		1,000,000

Otter Tail has never paid a cash or stock dividend. There has been no change in the capital accounts since Otter Tail began operations. The appropriate state law permits dividends only from retained earnings.

Required:

Complete a statement showing how the dividends would be distributable to the holders of the common shares and preferred shares. Round your answers to the nearest dollar.

Distribution of Remaining Retained Earnings 8% Common Preferred stock stock Total Dividends on common stock at preferred rate Distribution of remaining retained earnings Common stock 8% preferred stock $ $ $