Stockholders' equity of Ernst Company consists of 89,000 shares of $5 par value, 9% cumulative preferred stock and 325,000 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 $140,000 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-Par Value per preferred share, Dividend Rate %,# of preferred Shares, Preferred dividend for 2 years

To Cash Dividend

To Preferred Shareholders

To Common Shareholders