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Question(s) / Instruction(s):

*Ex. 15-125—Dividends on preferred stock.
The stockholders' equity section of Knott Corporation shows the following on December 31, 2007:
     Preferred stock—6%, $100 par, 4,000 shares outstanding     $ 400,000
     Common stock—$10 par, 60,000 shares outstanding     600,000
     Paid-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 12/31/07 and that preferred dividends were last paid on 12/31/05, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.

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