S D Sun 1:14 PM Chap 11 Part 2: Before Class Online Dividends. Classifieds Search Textbook Solutions Chegg.com 11 - Part 2: Before Class Online (Divid. O Help Save & Exit Submit When Crossett Corporation was organized in January Year 1. it immediately issued 6,000 shares of $51 par. 7 percent cumulative preferred stock and 10,500 shares of $6 par common stock. Its earnings history is as follows: Year 1. net loss of $14,500 Year 2. net income of $59,900, Year 3, net income of $117,000. The corporation did not pay a dividend in Yeart Required a. How much is the dividend arrearage as of January 1 Year 2? Dividend aarage b. Assume that the board of directors declares a $58.340 cash dividend at the end of Year 2 remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Amounts to be deducted should be indicated with minus sign) Distributed to Shareholders Preferred Common Amount Total dividend declared Year 1 Arrearage Year 2 Preferred dividends L Available for common Distributed to common Total distribution 0 $ 0 $ 0