1) Sweet Companys outstanding stock consists of 1,600 shares of cumulative 4% preferred stock with a $100 par value and 11,600 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

Dividend Declared

Year 1 $ 3,600

Year 2 $ 7,600

Year 3 $ 40,000

The total amount of dividends paid to preferred and common shareholders over the three-year period is:

2) Chang Industries has bonds outstanding with a par value of $208,000 and a carrying value of $215,000. If the company calls these bonds at a price of $211,000, the gain or loss on retirement is: