Regan, Inc., declared a cash dividend of $40,000 in 2017 when the following shares were outstanding:

Common shares, 20,000 shares $400,000

Preferred shares $0.60, 2,500 shares $25,000

No dividends were declared or paid during the prior year. Compute the amount of cash that would be paid to each shareholder group under each of the following separate case:

CASE A The preferred shares are noncumulative

Preferred $__________ Common $__________

CASE B The preferred shares are cumulative

Preferred $__________ Common $__________