Lone Star Theatre Inc. owns and operates movie theaters throughout Arizona and Texas. Lone Star Theatre has declared the following annual dividends over a six-year period: 2005, $7,500; 2006, $9,000; 2007, $30,000; 2008, $30,000; 2009, $40,000; and 2010, $48,500. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 10,000 shares of cumulative, 2% preferred stock, $50 par, and 50,000 shares of common stock, $1 par.

To calculate the total amount of dividends paid to preferred stockholders and common stockholders in each year, we need to determine the dividend payment for each class of stock.

1. Calculate the dividend payment to preferred stockholders:

The preferred stock has a fixed dividend rate of 2% and a par value of $50.

Year 2005:
Preferred stock dividend = (2% x $50) x 10,000 shares
= $1,000 x 10,000 shares
= $10,000

Year 2006:
Preferred stock dividend = (2% x $50) x 10,000 shares
= $1,000 x 10,000 shares
= $10,000

Year 2007:
Preferred stock dividend = (2% x $50) x 10,000 shares
= $1,000 x 10,000 shares
= $10,000

Year 2008:
Preferred stock dividend = (2% x $50) x 10,000 shares
= $1,000 x 10,000 shares
= $10,000

Year 2009:
Preferred stock dividend = (2% x $50) x 10,000 shares
= $1,000 x 10,000 shares
= $10,000

Year 2010:
Preferred stock dividend = (2% x $50) x 10,000 shares
= $1,000 x 10,000 shares
= $10,000

2. Calculate the dividend payment to common stockholders:

The dividend payment to common stockholders is the remaining amount after paying the preferred stock dividends.

Year 2005:
Common stock dividend = Total dividend - Preferred stock dividend
= $7,500 - $10,000
= -$2,500 (No dividend paid to common stock)

Year 2006:
Common stock dividend = Total dividend - Preferred stock dividend
= $9,000 - $10,000
= -$1,000 (No dividend paid to common stock)

Year 2007:
Common stock dividend = Total dividend - Preferred stock dividend
= $30,000 - $10,000
= $20,000

Year 2008:
Common stock dividend = Total dividend - Preferred stock dividend
= $30,000 - $10,000
= $20,000

Year 2009:
Common stock dividend = Total dividend - Preferred stock dividend
= $40,000 - $10,000
= $30,000

Year 2010:
Common stock dividend = Total dividend - Preferred stock dividend
= $48,500 - $10,000
= $38,500

Now we have the dividend payments for each class of stock for each year:

Year 2005:
Preferred stock dividend: $10,000
Common stock dividend: $0

Year 2006:
Preferred stock dividend: $10,000
Common stock dividend: $0

Year 2007:
Preferred stock dividend: $10,000
Common stock dividend: $20,000

Year 2008:
Preferred stock dividend: $10,000
Common stock dividend: $20,000

Year 2009:
Preferred stock dividend: $10,000
Common stock dividend: $30,000

Year 2010:
Preferred stock dividend: $10,000
Common stock dividend: $38,500

To calculate the annual dividend per share for each year, we need to determine the total dividend declared and then divide it by the total number of shares.

1. Calculate the total dividend declared for each year:
- 2005: $7,500
- 2006: $9,000
- 2007: $30,000
- 2008: $30,000
- 2009: $40,000
- 2010: $48,500

2. Calculate the total number of shares:
- Preferred stock: 10,000 shares
- Common stock: 50,000 shares

3. Determine the dividend per share for each year:
- 2005: Total dividend ($7,500) divided by total shares (60,000) = $0.125 per share
- 2006: Total dividend ($9,000) divided by total shares (60,000) = $0.15 per share
- 2007: Total dividend ($30,000) divided by total shares (60,000) = $0.5 per share
- 2008: Total dividend ($30,000) divided by total shares (60,000) = $0.5 per share
- 2009: Total dividend ($40,000) divided by total shares (60,000) = $0.6667 per share
- 2010: Total dividend ($48,500) divided by total shares (60,000) = $0.8083 per share

Therefore, the annual dividend per share for each year is as follows:
- 2005: $0.125 per share
- 2006: $0.15 per share
- 2007: $0.5 per share
- 2008: $0.5 per share
- 2009: $0.6667 per share
- 2010: $0.8083 per share