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When Crossett Corporation was organized in January, Year 1, it immediately issued 4,200 shares of $54 par, 4 percent, cumulative preferred stock and 9,500 shares

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When Crossett Corporation was organized in January, Year 1, it immediately issued 4,200 shares of $54 par, 4 percent, cumulative preferred stock and 9,500 shares of $8 par common stock. Its earnings history is as follows: Year 1, net loss of $17,000; Year 2. net income of $123.000: Year 3, net income of $201.000. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $53,000 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? Complete this question by entering your answers in the tabs below. Required Required B How much is the dividen arrearage as of January 1, Year 2? Dividend arrearage Required D > 4 5 When Crossett Corporation was organized in January, Year 1, it immediately issued 4,200 shares of $54 par, 4 percent. cumulative preferred stock and 9,500 shares of $8 par common stock. Its earnings history is as follows: Year 1. net loss of $17,000: Year 2. net income of $123,000; Year 3, net income of $201.000. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $53.000 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? co Complete this question by entering your answers in the tabs below. Required a required Assume that the board of directors declares a $53,000 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? Distributed to Shareholders Amount Preferred Common Total dividend declared Year 1 Arrange Year 2 Preferred dividends Avalable for common Distributed to common Total distribution Me G

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