126.Determine the amount of dividends per share on preferred and common stock for each of the three years.
The preferred stock is cumulative and nonparticipating. The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of $3 million, $6 million, and $50 million in each of its first three years of operation: 2011, 2012, 2013, respectively.Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 6%, $100 par, 1,000,000 shares outstandingRequired:127.Prepare any necessary journal entries. The shares were distributed on May 15, 2013, to stockholders of record on May 1, 2013. ZIP Company owns 40,000 shares of the common stock of PIK Company. ZIP decided to divest itself of this investment by distributing the PIK shares in the form of a property dividend. The dividend ratio is one share of PIK for every four shares of ZIP common held by shareholders. ZIP has 160,000 common shares outstanding. On April 15, 2013, the date of declaration, PIK stock had a par value of $5 per share, a carrying value of $12 per share, and a market value of $17 per share.Required: