Transcribed image text: Mastery Problem: Corporations Organization, Stock Transactions, and Dividends Pranks, Inc. Pronks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is mode. The company has two dasses of stock: common stock and cumulative preferred stock Number of common shares authorted 800,000 Number of common shares issued 650,000 Par value of common shares $20 Par value of cumulative preferred shores $30 Pold-in capital in excess of per-common stock $7,000,000 Paid in capital in excess of per preferred stock Total retained earnings before the stock dividend is declared $33,500,000 No treasury share have been reissued 50 Preferred Dividends Common Dividends Year Total Per Share Total Per Share Year Total Cash Dividends 40,000 72.000 104.000 0.20 0 0.00 Year 2 10,000 72,000 68,000 0.36 0 0.00 Years 0.4 35,000 0.09 Preferred Dividends Cornmon Dividends Total Cash Dividends Year Total Per Share Total Per Share Year 1 40,000 0.20 0 0.00 Year 2 0.36 0 0.00 72,000 68,000 Year 3 0.34 0.09 40,000 72,000 104,000 120,000 132,000 180,000 36,000 60,000 Year 1 60,000 0.3 0.15 Year 5 0.3 0.18 60,000 60,000 72,000 120,000 Year 6 0.3 0.3 Cash Dividends