Salty Corporation was organized in January 1997 and issued shares of preferred and common stock as shown. As of December 31, 2000, there have been no changes in outstanding stock Preferred stock $(8 \%, \$ 10$ par, 20,000 shares issued and outstanding) . . . . . . . . . . $\$ \$ 200,000$

Common stock ( $\$ 40$ par, 10,000 shares issued and outstanding) . . . . . . . . . . 400,000 For each of the following independent situations, compute the amount of dividends that would be paid for each class of stock in 1999 and 2000 . Assume that total dividends of $\$ 10,000$ and $\$ 80,000$ are paid in 1999 and 2000 , respectively 1. Preferred stock is noncumulative.

2. Preferred stock is cumulative, and no dividends are in arrears in 1999.

3. Preferred stock is cumulative, and no dividends have been paid during 1997 and 1998 .