Reference no: EM132201858

Question - The stockholders' equity section of Lemay Corporation shows the following on December 31, 2019:

Preferred stock - 6%, $100 par, 4,000 shares outstanding $400,000

Common stock - $20 par, 60,000 shares outstanding 600,000

Pain-in capital in excess of par 200,000

Retained earnings 114,000

Total stockholders equity $1,314,000

Instructions: Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/19 and preferred dividends were last paid on 12/31/17, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.