1088 SECTION 3 Liabilities and Shareholders' Equity The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $8 million, $20 million, and $150 million in its first three years of operation-2021, 2022, and 2023, respectively. E 18-18 Effect of cumulative, nonparticipating preferred stock on dividends-3 years LO 18-7 980 ($ in millions) Common stock $100 Paid-in capital-excess of par, common Preferred stock, 8% 200 Paid-in capital-excess of par, preferred 555 Required: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. Preferred Common 2021 2022 2023 The shareholders' equity of Core Technologies Company on June 30, 2020, included the following: E 18-19 Stock dividend 400 Common stock. $1 par, authorized. 8 million shares: The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 020 2 E 18-23 Transactions affecting retained earnings LO18-6 through LO18-8 Paid in capital: Preferred stock, 8.8%, 90,000 shares at $1 par Common stock, 364,000 shares at $1 par Paid in capital-excess of par, preferred Pald-in capital-excess of par, common Retained earnings Treasury stock, at cost: 4,000 common shares Total shareholders'equity $ 90,000 364,000 1,437,000 2,574,000 9,735,000 (44,000) $14,156,000 During 2021. several events and transactions affected the retained carnings of Consolidated Paper Required: 1. Prepare the appropriate entries for these events a. On March 3, the board of directors declared a property dividend of 240,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $700.000). The investment shares had a fair value of $3 per share and were distributed March 31 to shareholders of record March 15. b. On May 3. a 5-for-4 stock split was declared and distributed. The stock split was cffected in the form of a 25% stock dividend. The market value of the S1 par common stock was $Il per share. c. On July 5. a 2% common stock dividend was declared and distributed. The market value of the common stock was $11 per share. d. On December 1, the board of directors declared the 8.8% cash dividend on the 90.000 preferred shares, payable on December 28 to shareholders of record December 20, c. On December 1, the board of directors declared a cash dividend of $0.50 per share on its common shares payable on December 28 to shareholders of record December 20 2. Prepare the shareholders' cquity section of the balance sheet for Consolidated Paper, Inc., at December 31. 2021. Net income for the year was 88 10,000