Xtreme Sports has $200,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtrem

Xtreme Sports has $200,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $600,000 of common stock outstanding. In the company’s first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $40,000. This dividend should be distributed as follows: $20,000 preferred; $20,000 common. $21,000 preferred; $19,000 common. $0 preferred; $40,000 common. $16,000 preferred; $24,000 common. $10,000 preferred; $30,000 common.