Carla Corporation had a net income for the current year ending December 31, 2021 of $1,204,500. Throughout 2021 the following items were outstanding:

		413,000 common shares
		18,500 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1
		49,500 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares.
		$551,000, 8% bonds that were convertible to 14,500 common shares
		$303,000, 10% bonds convertible to 9,000 common shares

No dividends were declared or paid in 2021. Carlas tax rate is 25%.

(a1)

Calculate the income effect of the dividends on Class A preferred shares.