Reference no: EM132507163

When Crosset Corporation organized January 2018, it immidatelty issued 4,300 shares of $53 par, 6 percent, cumulative preferred stock and 9,500 shares $8 par common stock. Its earnings history as follows 2018 net loss of $15,400; 2019, net income of $65,000; 2020, net income of $105,200. The corporation did not pay a dividend in 2018.

Question 1: how much is the dividend arrearage of January 1,2019?

Question 2: Assume that the board of directors declares a $42,8484 cash dividend at the end of 2019 ( Remember that the 2018 and 2019 preferred dividends are due.) How will the dividend be divided between the perferred stock and common stockholders