When Higdon Corporation was organized in January 2014, it immediately issued 5,600 shares of $47 par, 7 percent, cumulative preferred stock and 12,000 shares of $8 par common stock. The company's earnings history is as follows: 2014, net loss of $12,100; 2015, net income of $62,000; 2016, net income of $84,700. The corporation did not pay a dividend in 2014.

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