Pearl Garde Corporation has 150,000 shares of $1.35 preferred stock outstanding in addition to its common stock. The $1.35 designation means that the preferred stockholders receive an annual cash dividend of $1.36 per share. In 2021, Pear Garde declares an annual dividend of $500,000. The allocation to preferred and common stockholders: (Click the icon to view the data.) Read the requirements 1. How much in dividends must Pearl Garde declare each year before the common stockholders receive any cash dividends for the year? Dividends the company must declare each year before the common stockholders receivable any cash dividends $200,000 2. Suppose Pearl Garde declares cash dividends of $600.000 for 2021. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Class of Stock 2021 Dividends Preferred Common Total Data table Preferred dividend (150,000 shares 1.35 per share) Common dividend (remainder: $500,000-$202.500) Total dividend $ 202,500 297,000 500,000