No dividends were declared in 2015.During 2016,the total dividends declared amount to $10,000.There are 4,000 shares of $1 cumulative preferred shares outstanding and 10,000 common shares outstanding.The total amount of dividends payable to each class of shares in 2016 amounts to:

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Since the preferred shares are cumulative and no dividends were declared in 2015, the dividends for 2015 must be paid in 2016 before any dividends are paid to common shareholders. With 4,000 shares of $1 cumulative preferred shares, the annual dividend per share is $1, totaling $4,000 for one year. Since dividends were not paid in 2015, an additional $4,000 is due for 2016, totaling $8,000 for preferred shares. The remaining $2,000 ($10,000 total dividends - $8,000 for preferred shares) is payable to common shareholders.

No Dividends Were Declared in 2015