The stockholders equity section of Joshua Company shows the following on December 31, 2022:

Preferred stock, 4%, $50 par value, 5,000 shares outstanding $250,000

Common stock, $5 par value, 80,000 shares outstanding 400,000

Paid-in capital in excess of par, common stock 200,000

Retained earnings 210,000

Total stockholders equity $1,060,000

Required:

Assume that the corporation has determined to pay out $70,000 in dividends at December 31, 2022. The last time that dividends were paid was on December 31, 2020. Calculate the amount of dividends that would be paid to preferred shareholders and the amount that would be paid to common shareholders under the following independent situations:

The preferred stock is noncumulative and nonparticipating.

The preferred stock is cumulative and nonparticipating.