Stockholders' equity of Ernst Company consists of 81,000 shares of $5 par value, 9% cumulative preferred stock and 285,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $130,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Calculation of Preferred Dividend Total cash dividend Par Value per Preferred Share Dividend Dividend per Preferred Number of Preferred Rate Share Shares Preferred Dividend for two years % To preferred shareholders To common shareholders $ 0