The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year:

Common stock, $10 par value, 33,000 shares outstanding

Preferred stock, 9 percent, $8 par value, 5,000 shares outstanding

Retained earnings, $231,000

On September 1 of the current year, the board of directors was considering the distribution of an $69,000 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):

a. The preferred stock is noncumulative.

b. The preferred stock is cumulative.