York’s outstanding stock consists of 80,000 shares of cumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:

York’s outstanding stock consists of 80,000 shares of cumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:

    

2013	$	20,000
2014		28,000
2015		200,000
2016		350,000

Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined.  Explanation:     Cumulative Preferred Common   2013 ($20,000 paid)           Preferred* $ 20,000           Common—remainder     $ 0         Total for the year $ 20,000     $ 0          (Note: $10,000 in preferred stock dividends in arrears.)                       2014 ($28,000 paid)           Preferred—arrears from 2013 $ 10,000           Preferred* $ 18,000           Common—remainder     $ 0          Total for the year $ 28,000     $ 0          (Note: $12,000 in preferred stock dividends in arrears.)                        2015 ($200,000 paid)           Preferred—arrears from 2014 $ 12,000           Preferred* $ 30,000           Common—remainder     $ 158,000         Total for the year $ 42,000     $ 158,000          (Note: $0 in preferred stock dividends in arrears.)                        2016 ($350,000 paid)           Preferred* $ 30,000           Common—remainder     $ 320,000         Total for the year $ 30,000     $ 320,000         (Note: $0 in preferred stock dividends in arrears.)                       2013-2016 ($598,000 paid)                Total for four years $ 120,000     $ 478,000           * The holders of the cumulative preferred stock are entitled to no more than $30,000 of dividends declared in any year (7.5% × $5 × 80,000 shares) plus any dividends skipped in prior years.