The shareholders equity of Kramer Industries includes the data shown below. During 2014, cash dividends of $180 million were declared. Dividends were not declared in 2012 or 2013.

	($ in millions)
Common stock	$	380
Paid-in capitalexcess of par, common		1,140
Preferred stock, 10%, nonparticipating		190
Paid-in capitalexcess of par, preferred		380

Required:

Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following two assumptions regarding the characteristics of the preferred stock. (Enter your answers in millions.)

Assumption A The preferred stock is noncumulative.

Assumption B The preferred stock is cumulative.

Preferred Common

assumption A

assumbtion B