Stockholders' equity of Ernst Company consists of 85,000 shares of $5 par value, 11% cumulative preferred stock and 305,000 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 $150,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Preferred Dividend Dividend per Rate Par Value per Number of Preferred Preferred Share Preferred Dividend for two years Share Shares Calculation of preferred dividend Total cash dividend To preferred shareholders To common shareholders