Question - Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends:

2017       $6,000

2018       $30,000

2019       $60,000

a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative. (Show calculations)

b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative. (Show calculations)