Question - Martinez Company's ledger shows the following balances on December 31, 2012.
Preferred stock (5%; $10 par value, outstanding 20,000 shares: $200,000)
Common stock ($100 par value, outstanding 30,000 shares: $3,000,000)
Retained earnings: 630,000
Assuming that the directors decide to declare total dividends in the amount of $266,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.