Exercise 11-6A Accounting for cumulative preferred dividends LO 11-3 When Crossett Corporation was organized in January Year 1, it immediately issued 5,200 shares of $50 par, 6 percent, cumulative preferred stock and 9,500 shares of $12 par common stock. Its earnings history is as follows: Year 1, net loss of $15700; Year 2.net income of $124,000; Year 3, net income of $108,500. The corporation did not pay a dividend in Year 1