Problem 2 Fairley Company paid cash dividends at the end of each of its first three years of operation as follows: Year 1 Year 2 Year 3 $ 100,000 $ 98,000 $1,260,000 The company's balance sheet showed the following accounts throughout the three-year period: 600,000 shares of $3 par common stock Paid-in capital in excess of par, common 120,000 shares of 6% preferred, $20 par stock Paid-in capital in excess of par, preferred $1,800,000 $4,200,000 $2,400,000 $3,600,000 Determine the amount of total dividends paid on common and preferred stock for each year, assuming that the preferred stock is cumulative and participating. Show your work! Preferred Common Year 1 Year 2 Year 3