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Cumulative Preferred Dividends

Capital stock of Barr Company includes:

Common stock, $5 par, 610,000 shares outstanding	$3,050,000
Preferred stock, 15% cumulative, $70 par, 12,000 shares outstanding	840,000

As of December 31, 2024, 2 years' dividends are in arrears on the preferred stock. During 2025, Barr plans to pay dividends that total $498,000.

Required:

1. Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in 2025.

Total dividend to preferred stockholders	$
Total dividend to common stockholders	$

2. If Barr paid $390,000 of dividends, determine how much each group of stockholders would receive.

Total dividend to preferred stockholders	$
Total dividend to common stockholders