Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends:

2017 $6,000

2018 $30,000

2019 $60,000

a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative.(Show calculations)

b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative.(Show calculations)