The shareholders' equity of Kramer Industries includes the data shown below. During 2012, cash dividends of $210 million were declared. Dividends were not declared in 2010 or 2011.

($ in millions)
Common stock $ 250
Paid-in capital-excess of par, common 800
Preferred stock, 11%, nonparticipating 125
Paid-in capital-excess of par, preferred 270

Required:

Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following two assumptions regarding the characteristics of the preferred stock.

Assumption A - The preferred stock is noncumulative.

Assumption B - The preferred stock is cumulative.