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

413,000common shares18,500Class A $3cumulative preferred shares that were convertible to common shares at a rate of 1:149,500Class B $4non-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 to14,500common shares$303,000, 10% bonds convertible to9,000common shares

No dividends were declared or paid in 2021.Carla's tax rate is 25%.

a) Calculate the income effect of the dividends on Class B preferred shares.