Stockholders equity of Ernst Company consists of 76,000 shares of $5 par value, 8% cumulative preferred stock and 260,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the companys inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $105,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company.

Q5 11-10 Dividend allocation between classes of shareholders LO C2 Stackhalders' equ ty of Ernst Compeny cone sts of 76,000 shares af $5 por ve ue, 99 cum ulative preferred stack end 260,000 shares af $1 par vo ue common mack Bath classes af stock hive been outatsnding since the campeny's inceptian. Emst did nat decisre sny dividends in the pror yesr, but it now deciares snd pays a $105,000 cssh diviend st the current yesrend. Determine the smount distrbuted to esch clazs of stockholders for this twoyear-old company