The records of Hoffman Company reflected the following balances in the shareholders equity accounts at December 31 of the current year:

Common shares, no par value, 42,500 shares outstanding	$	850,000
Preferred shares, $3, no par value, 6,600 shares outstanding		153,000
Retained earnings		241,000

On September 1 of the current year, the board of directors was considering the distribution of a $72,500 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations):

- The preferred shares are non-cumulative.

- The preferred shares are cumulative.

Required:

1. Determine the total amounts that would be paid to the preferred shareholders and to the common shareholders under the two independent assumptions. (Round "Per share" to 2 decimal places.)

\begin{tabular}{|l|l|l|l|} \hline & & Preferred & Common \\ \hline a. & Noncumulative: & \\ \hline & Total & \\ \hline & Per share & \\ \hline b. & Cumulative: & \\ \hline & Total & Per share & \\ \hline & \end{tabular}