Perry Corporation was established on January 1, Year 1 when…
Perry Corporation was established on January 1, Year 1 when it issued 21,800 shares of $50 par, 5 percent, cumulative preferred stock and 66,000 shares of $10 par value common stock. The company’s earnings history is as follows: Year 1$121,360Net lossYear 2$200,000Net incomeYear 3$210,000Net income The corporation paid the maximum amount of dividends possible in each year of operation. The dividend paid to preferred stockholders at the end of Year 2 is