Bonita Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Bonita also had 106,000 $3 cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase 30,000 common shares at $17 per share. The average market price of Bonita's common shares during the year ended August 31, 2023 was $25 per share. The options expire in 2032 , and none were actually exercised during the current year. Also outstanding for the entire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Bonita Inc.'s net income for the year was $2,702,500, and the income tax rate for the fiscal year was 40%. (a) Calculate the income effect of the dividends on the preferred shares. Dividends on preferred shares $ eTextbook and Media