On December 31; 2020, Costko Corporation had 50,000 shares of \(6 \%, \$ 10\) par, cumulative preferred stock.

Required 

Indicate where the preferred stock is reported in the balance sheet for each separate scenario.

a. Preferred shares of Costko are nonredeemable.

b. Preferred shares of Costko will be called in by Costko on December 31, 2024, for a fixed price. Although not obligated to pay dividends each year, Costko intends to pay the \(6 \%\) dividend to the preferred shareholders over the next 5 years.

c. Preferred shares of Costko may be redeemed by shareholders at a predetermined price at any point in time.

d. Preferred shares of Costko may be called in by Costko at any point in time.