1. At December 31, 2021, Major Company has an equity portfolio valued at $240,000. Its cost was $120,000. If the Securities Fair Value Adjustment has a credit balance of $5,000, how much of an adjustment will be necessary at year end?
2. Jersey, Inc. has outstanding 300,000 shares of $3 par common stock and 100,000 shares of no-par 5% preferred stock with a stated value of $8. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past three years and the current year. Assuming that $150,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?