Stewart Corporation has the following stock outstanding:

Preferred stock $(5 \%, \$ 20$ par value, 20,000 shares)

Common stock ( $\$ 5$ par value, 80,000 shares)

For the two independent cases that follow, compute the amount of dividends that would be paid to preferred and common shareholders. Assume that total dividends paid are $\$ 86,000$. No dividends have been paid for the past two years.

Case A, Preferred is noncumulative.

Case B, Preferred is cumulative.