Preferred stock can be issued with different features. When the terms of a preferred stock issue require that if the corporation fails to pay aShortwave Corp. issued $300,000$ shares of $$0\mathrm{.}01$ par common stock for in $2016$ for $$3,600,000.$ During $2019,$ Shortwave paid $$15$ per share to repurchase $25,000$ shares of its own common stock as treasury shares. Three months later Shortwave resold all $25,000$ treasury shares at $$19$ per share. Shortwave uses the cost method to record treasury stock transactions. To record the resale of the $25,000$ treasury shares, Shortwave should creditdividend in any year, it must make it up in a later year before paying any dividends to common stockholders, the preferred stock is said to be