3.)

3 0.9 points When Crassett Corporation was organized in January, Year 1, it immediately issued 5,300 shares of $53 par 8 percent, cumulative preferred stock and 8,000 shares of $14 par common stock. Its earnings history is as follows: Year 1, net loss of $14,500; Year 2. net income of $106,000; Year 3, net income of $101,800. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? bheidend mange book References b. Assume that the board of directors declares a $56,444 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Total amount distributed to preferred shares Total amount distributed to common shares