Culpepper Corp. has the following information available at 12/31/X3:
• Common Stock: $5 par, 500,000 shares issued and outstanding.
• Preferred Stock: $60 par, 8%, 20,000 shares issued and outstanding.
Culpepper's preferred stock is cumulative.
No dividends were paid in the prior two years (20X2 and 20X1).
On 12/31/X3, the board of directors declares a total dividend of $400,000 to be divided between its common and
preferred shareholders.
Required: In the chart below, indicate the portion of the total dividend the preferred and common shareholders,
respectively, should receive when the dividend is paid.
Preferred shareholders will receive: Common shareholders will receive:
$
$
