The books of Waterway Corporation carried the following account balances as of December 31, 2025. Cash $190,000 Preferred Stock (6% cumulative, nonparticipating, $50 par) 316,000 Common Stock (no-par value, 284,000 shares issued) 1,420,000 Paid-in Capital in Excess of Par-Preferred Stock 140,000 Treasury Stock (common 2,700 shares at cost) 32,400 Retained Earnings 99,500 The company decided not to pay any dividends in 2025. The board of directors, at their annual meeting on December 21, 2026, declared the following: "The current year dividends shall be 6% on the preferred and $0.30 per share on the common. The dividends in arrears shall be paid by issuing 1,580 shares of treasury stock V At the date of declaration, the preferred is selling at $86 per share, and the common at $12 per share. Net income for 2026 iso to Setting estimated at $73,600.