Rensing, Inc., has $800,000 of 4% preferred stock and $1,200,000 ofcommon stock outstanding, each having a par value of $10 per share. Nodividends have been paid or declared during 2019 and 2020. As ofDecember 31. 2021, it is desired to distribute $270,000 in dividends.Instructions:How much will the preferred and common stockholders receive under eachof the following assumptions:1. The preferred is noncumulative and nonparticipating.2. The preferred is cumulative and nonparticipating.3. The preferred is noncumulative and fully participating.4. The preferred is cumulative and fully participating.5. The preferred is cumulative and participating to 7% total. **Analysis of Dividend Distribution for Rensing, Inc.**Rensing, Inc. has $800,000 in 4% preferred stock and $1,200,000 in common stock outstanding, each with a par value of $10 per share. No dividends have been distributed or declared during 2019 and 2020. As of December 31, 2021, the company aims to distribute $270,000 in dividends.**Instructions for Dividend Distribution Analysis**Determine the distribution of dividends to preferred and common stockholders under the following scenarios:1. **Noncumulative and Nonparticipating Preferred Stock** - Preferred stockholders do not receive dividends for prior years if unpaid. - They only receive current year dividends.2. **Cumulative and Nonparticipating Preferred Stock** - Preferred stockholders receive dividends for past unpaid years before common stockholders receive any distribution.3. **Noncumulative and Fully Participating Preferred Stock** - After receiving their specified dividends, preferred stockholders share any remaining distributions equally with common stockholders.4. **Cumulative and Fully Participating Preferred Stock** - Preferred stockholders are paid past unpaid dividends first. - After all specified dividends are paid, preferred and common stockholders equally share any remaining distribution.5. **Cumulative and Participating to 7% Total Preferred Stock** - Preferred stockholders are paid any past unpaid dividends. - They participate in extra distributions, up to a 7% total return.Each assumption affects the payout distribution and order of preference between stock types, impacting the total dividends each group receives. The image displays a spreadsheet with sections divided into four categories, labeled 1 to 4. Each category contains three rows with text represented as "XXXXXXXX" in column A. Columns B, C, and D list monetary values represented by "$$$$" under the headers "Preferred", "Common", and "Total", respectively. Here's a breakdown:### Category 1- **Rows 3 to 5**: - **Preferred**: $$$$ - **Common**: $$$$ - **Total**: $$$$### Category 2- **Rows 9 to 11**: - **Preferred**: $$$$ - **Common**: $$$$ - **Total**: $$$$### Category 3- **Rows 15 to 17**: - **Preferred**: $$$$ - **Common**: $$$$ - **Total**: $$$$### Category 4- **Rows 20 to 22**: - **Preferred**: $$$$ - **Common**: $$$$ - **Total**: $$$$Each category follows the same structure, with placeholders suggesting a uniform pattern of data entry. The image captures a financial or data allocation overview in a tabular format.

Dividend is the amount that is to received by the stockholders of the company that is preference and the common shareholder. Preference shares holder have some preferential right over the common stockholder when it comes to the receipt of dividend and settlement in case of liquidation of the company.The calculation of amount of dividend to be received by the preferred and common stockholders is as follows: The formula snip is as follows: