Rasmussen Corporation had authorization for 40,000 shares of 6% preferred stock, par value $10 per share, and 8,000 shares of common stock, par value $100 per share, all of which are issued and outstanding. During the years beginning in 2002, Rasmussen Corporation maintained a policy of paying out 50% of net income in cash dividends. One-half the net income for the three years beginning in 2002 was $16,000, $160,000, and $128,000. There are no dividends in arrears for years prior to 2002. Compute the amount of dividends paid to each class of stock for each year under the following separate cases: 1. Preferred stock is noncumulative. 2. Preferred stock is cumulative. 3. Interpretive Question: Why is it important that a common stockholder know about the dividend privileges of the preferred stock?