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A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year:
Preferred stock, $100 par, 6% 5,000 shares issued $500,000
Common stock, $10 par, 70,000 shares issued 700,000
Total $1,200,000
Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.
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