Blossom Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2023 Balance Sheet as follows: Long Term Liabilities: Bonds Payable $7,400,000 10% interest, convertible to 20 common shares $1,000 bond Bonds Payable $4,500,000 5% interest, convertible to 45 common shares $1,000 bond Shareholders' Equity: Class A Preferred shares $6,270,000 $3.60 cumulative preferred share convertible into 9 common shares, 114,000 authorized, issued and outstanding Class B Common shares $29,880,000 Unlimited number authorized 4,980,000 issued and outstanding All of the above reported bonds payable, preferred stock and common stock were outstanding throughout the entirety of fiscal 2023. No transactions involving the bonds payable, preferred stock or common stock occurred during fiscal 2023, except for interest on the bonds payable. The bonds payable were all issued and sold at par. Blossom also had Class B common stock options to purchase 230,000 common shares at $9.00 per share outstanding throughout fiscal 2023. No stock options were exercised during fiscal 2023. The fair market value of Blossom's common shares was $14.00 per share throughout the entirety of fiscal 2023. Blossom's income tax rate is 37%. The weighted average of common shares outstanding for 2023 was 4,980,000 common shares, and Blossom earned net income of $16,097,400. Calculate the income effect of the dividends on the preferred shares. Dividends on preferred shares $