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In: AccountingWhen Crossett Corporation was organized in January Year 1, itimmediately issued 5,700 shares of $54...When Crossett Corporation was organized in January Year 1, itimmediately issued 5,700 shares of $54 par, 5 percent, cumulativepreferred stock and 11,500 shares of $6 par common stock. Itsearnings history is as follows: Year 1, net loss of $12,600; Year2, net income of $61,900; Year 3, net income of $116,400. Thecorporation did not pay a dividend in Year 1.Requireda. How much is the dividend arrearage as ofJanuary 1, Year 2? b. Assume that the board of directors declares a$47,780 cash dividend at the end of Year 2 (remember that the Year1 and Year 2 preferred dividends are due). How will the dividend bedivided between the preferred and common stockholders?(Amounts to be deducted should be indicated with minussign.)