Remington, Inc., has $800,000 of 4% preferred stock and $1,200,000 of common stock outstanding,each having a par value of $10 per share. No dividends have been paid or declared during 2017 and 2018.As of December 31, 2019, it is desired to distribute $270,000 in dividends.

Can you please explain how much will the preferred and common stockholders receive under each of the following assumptions:

(a) The preferred is noncumulative and nonparticipating.

(b) The preferred is cumulative and nonparticipating.