When Crossett Corporation was organized in January, Year 1, it immediately issued 4,200 shares of $53 par, 4 percent, cumulative preferred stock and 10,500 shares of $15 par common stock. Its earnings history is as follows: Year 1, net loss of $15,000; Year 2, net income of $123,000; Year 3, net income of $223,000. The corporation did not pay a dividend in Year 1