The outstanding capital stock of XYZ Corporation consists of 2,000

shares of $100 par value, 6% preferred, and 5,000 shares of $50 par value common.

Assuming that the company has retained earnings of $70,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, determine how much each class of stock should receive if the preferred stock is cumulative and participating.