When Crossett Corporation was organized in January. Year 1, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: Year 1, net loss of $35,000. Year 2, net income of $125,000; Year 3, net income of $215,000. 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 $40,000 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? Tom Yuppy, a wealthy investor, paid $20,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corp. A month later, Leuig Corp. issued an additional 2,000 shares of stock to Yuppy for $25 per share. Required Show the effect of the two stock issues on Leuig's books in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. Event 1-Common stock 2-Issue of additional shares LEUIG CORP. Horizontal Statements Model Balance Sheet Income Statement Assets Common Cash Land Stock Stockholders' Equity PIC in Excess Statement of Cash Revenue Expense Net Income Flow Elroy Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par of $10 per share. A mont Elroy resold 900 shares of the treasury stock for $32 per share Required What is the balance of the Treasury Stock account after these transactions are recognized? Balance of treasury stock