C8A-9

When Crossett Corporation was organized in January 2018, it immediately issued 4,800 shares of $48 par, 6 percent, cumulative preferred stock and 10,000 shares of $9 par common stock. Its earnings history is as follows: 2018, net loss of $14,900; 2019, net income of $57,100; 2020, net income of $116,100. The corporation did not pay a dividend in 2018. Assume that the board of directors declares a $38,648 cash dividend at the end of 2019 (remember that the 2018 and 2019 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Negative amounts should be indicated by a minus sign.) Distributed to Shareholders Amount Preferred Common Total dividend declared 2018 Arrearage 2019 Preferred dividends Available for common 0 Distributed to common Total distribution $ 0 $ 0