a. how much is the dividend arrearage as of January 1, Year 2 ? b. assume that the board of directors declares a $34,900 cash dividend at the year of year 2. how would the dividend be divided between the preferred and common stockholders ?

CH When Crossett Corporation was organized in January, Year 1, it immediately issued 4.500 shares of $52 par 5 percent, cumulative preferred stock and 9,500 shares of $14 par common stock. Its earnings history is as follows: Year 1. net loss of $12,200, Year 2. net income of $115,000 Year 3, net income of $89,700. The corporation did not pay a dividend in Year 1 Required o. How much is the dividend arrearage as of January 1. Year 2? Dividend arrearage b. Assume that the board of directors declares a $34,900 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