Q4. Exercise 14-02 Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 110,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $5,325; 2020, $13,800; and 2021, $28,500.

a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative.

b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative.