Red Hot Company issued and has outstanding $114,000$ shares of $$10$ par$-$value common stock and $6,400$ shares of $$50$ par$-$value $6$ percent preferred stock. The board of directors votes to distribute $$11,400$ as dividends in $20$X$1,$ $$27,000$ in $20$X$2,$ and $$101,400$ in $20$X$3.$

Required:

Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the following assumed situations:

Case A: The preferred stock is nonparticipating and noncumulative.

Case B: The preferred stock is cumulative and nonparticipating.

Analyze:

If a stockholder owned $490$ shares of cumulative preferred stock in $20$X$1,20$X$2,$ and $20$X$3,$ what total dividends should be paid to this stockholder in the fiscal year $20$X$3,$ assuming Case B$?$