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The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at...

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Accounting

The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year:

Common stock, $10 par value, 32,000 shares outstanding

Preferred stock, 10 percent, $8 par value, 7,000 shares outstanding

Retained earnings, $232,000

On September 1 of the current year, the board of directors was considering the distribution of an $73,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations):

a. The preferred stock is noncumulative.

b. The preferred stock is cumulative.

Required:

1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions. (Round "per share" to 2 decimal places.)

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