Dividends on Preferred and Common Stock Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $40,000; Year 2, $50,000; Year 3, $80,000; Year 4, $230,000; Year 5, $290,000; and Year 6, $350,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of 4% preferred stock, $100 par, and 100,000 shares of common stock, $25 par. Instructions: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0". Preferred Dividends Common Dividends Year Total Dividends Total Per Share Total Per Share Year 1 $40,000 40,000 Year 2 50,000 50,000 Year 3 80,000 80,000 Year 4 230,000 Year 5 290,000 Year 61 350,000 0000 Sun Dance Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 3 of the current year, Sun Dance Gardens Inc. reacquired 16,300 shares of its common stock at $27 per share. Sun Dance had not previously purchased any treasury shares. a. What is the balance of Treasury Stock on December 31 of the current year? 440,100 b. How will the balance in Treasury Stock be reported on the balance sheet? a decrease in total stockholders' equity c. Assume that Sun Dance Gardens sold 10,300 shares of its treasury stock at $29 on November 2. What accounts would be affected by the sale of the treasury stock? Paid-In Capital from Treasury Stock Increases by x Incorrect Cash Increases by Treasury Stock decreases by s < Effect of Financing on Earnings Per Share BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $500,000 Preferred 2% stock, $20 par 500,000 Common stock, $25 par 500,000 Income tax is estimated at 60% of income. Round your answers to the nearest cent. a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $170,000. per share b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $220,000. per share c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $270,000. per share