Please complete Questions #1, #2, and #3.

Question 1: Marsh Corporation issued 461,600 $1.6 cumulative preferred shares. In its first year of operations, it paid $636,560 of dividends to its preferred shareholders. In its second year, the company paid dividends of $738,560 to its preferred shareholders. a) What is the total annual preferred dividend supposed to be for the preferred shareholders? b) Calculate any dividends in arrears in years 1 and 2. Year1 Year2 Dividends in Arrears Question 2: Laine Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2 for 1 stock split. The current share price is $13 per share. Help Laine make its decision by completing the following chart (treat each possibility independently): Before Action Total assets Total liabilities Shareholder's Equity Common shares Retained earnings Total shareholder's equity Total liabilities and shareholder's equity Number of common shares After Cash Dividend After Stock Dividend After Stock Split N/A N/A N/A $1,254,200 $232,700 N/A 611,800 409,700 1,021,500 $1,254,200 109,900 Question 3: Sandhu Travel Agency Ltd. has 431,000 common shares authorized and 138,000 shares issued on December 31, 2014. On January 2, 2015, Kang Inc. purchased shares of Sandhu Travel Agency for $40 per share. Kang intends to hold these shares as a long term investment. Kang's accountant prepared a trial balance as at December 31, 2015, under the assumption that Kang could not exercise significant influence over Sandhu Travel Agency. Under this assumption, the trial balance included the following accounts and amounts related to the Sandhu investment: Longterm investment: $1,460,040 Dividend revenue: $126,960 Unrealized gain on longterm investment: $190,440 How many shares of Sandhu Travel Agency did Kang purchased on January 2? (Hint: Subtract the unrealized gain from the investment account)