7 The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of $2.8 million, $7.0 million, and $51.2 million in each of its first three years of operation: 2019, 2020, and 2021, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 7%, $100 par, 1,000,000 shares outstanding 5 points Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating. (Enter your answers in millions rounded to 2 decimal places.) X 02:58:50 Year Preferred Common 2019 2020 eBook 2021 8 Several years ago, Western Electric Corp. purchased equipment for $21,000,000. Western uses straight-line depreciation for financial reporting and accelerated depreciation for tax purposes. At December 31, 2020, the carrying value of the equipment was $18,900,000 and its tax basis was $15,750,000. At December 31, 2021, the carrying value of the equipment was $16,800,000 and the tax basis was $11,550,000. There were no other temporary differences and no permanent differences. Pretax accounting income for the current year was $26,000,000. A tax rate of 25% applies to all years. 6 points Required: Prepare the journal entry to record Western's income tax expense for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 8 02:58:42 View transaction list eBook Journal entry worksheet 1 Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Pocus, Inc., reports warranty expense when related products are sold. For tax purposes, the warranty costs are deductible as incurred. At the end of the current year, Pocus has a warranty liability of $220,000 and taxable income of $24,000,000. At the end of the previous year, Pocus reported a deferred tax asset of $84,000 related to the difference in reporting warranty expense, its only temporary difference. The enacted tax rate is 25% each year. 4 points Required: Prepare the appropriate journal entry for Pocus to record the income tax provision for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 8 02:58:35 View transaction list eBook Journal entry worksheet Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit