1. Derek Corporation was organized on January 1, 2018. During its first year, the corporation issued 50,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2018 $15,000 2019 $30,000 2020 $65,000 Instructions (a) Show the allocation of dividends to each dass of stock, assuming the preferred stock dividend is 6% and not cumulative 2020 Preferred 2018 2019 Common (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative 2018 2019 Preferred Common 2. The balance in retained earnings on January 1, 2020. for Ettenger Inc. was $500.000 During the year the corporation paid cash dividends of $90,000 and distributed a stock dividend of $10.000 Net income for 2020 was $110,000 Instructions Show the calculation of the balance in Retained Earnings at the end of 2020