Wildhorse Companys ledger shows the following balances on December 31, 2017.

4% Preferred Stock$10 par value, outstanding 20,000 shares $ 200,000

Common Stock$100 par value, outstanding 32,100 shares 3,210,000

Retained Earnings 652,000

Assuming that the directors decide to declare total dividends in the amount of $360,000, determine how much each class of stock should receive under each of the conditions stated below. One years dividends are in arrears on the preferred stock.

(a) The preferred stock is cumulative and fully participating. the answer is not 16000, or 344,000 for preferred and common respectively.

(b) The preferred stock is noncumulative and nonparticipating. (c) The preferred stock is noncumulative and is participating in distributions in excess of a 7% dividend rate on the common stock