When Crossett Corporation was organized in January, Year 1, it immediately issued 4,100 shares of $52 par, 6 percent, cumulative preferred stock and 9,500 shares of $7 par common stock. Its earnings history is as follows: Year 1, net loss of $15,000; Year 2, net income of $122,000; Year 3, net income of $224,000. The corporation did not pay a dividend in Year 1