Problem 8-23 (algo) common and preferred stock—issuances and dividends lo 1, 2[the following information applies to the questions displayed below.]homestead oil corp. was incorporated on january 1, 2019, and issued the following stock for cash: 880,000 shares of no-par common stock were authorized; 150,000 shares were issued on january 1, 2019, at $18.00 per share.300,000 shares of $100 par value, 8.00% cumulative, preferred stock were authorized; 78,000 shares were issued on january 1, 2019, at $130 per share. net income for the years ended december 31, 2019 and 2020 was $1,390,000 and $2,460,000, respectively. no dividends were declared or paid during 2019. however, on december 28, 2020, the board of directors of homestead declared dividends of $1,660,000, payable on february 12, 2021, to holders of record as of january 19, 2021.