Current Attempt in Progress

Following is information taken from Novak Inc.$\text{'}$s December $31,2023$ SFP:

$5\%$ bonds payable, $$5,925,000$ maturing December $31,2025,$

each $$1,000$ bond convertible into $19$ common shares

$$5,925,000$

$8\%$ bonds payable, $$4,940,000,$ maturing December $31,2026,$

each $$1,000$ bond convertible into $29$ common shares at any time up to December $31,2026,$$$4,940,000$

Cumulative preferred shares, $$5,$ no$-$par value, convertible at

$1$ preferred share for $4$ common shares, $45,500$ shares outstanding

$$910,000$

Common shares, no par$-$value, $2,799,000$ shares outstanding

Novak's net income for $2023$ was $$8,464,250,$ and the company was subject to an income tax rate of $20\%.$ Both classes of bonds were

outstanding the entire year, as were the preferred shares. The weighted$-$average number of common shares outstanding during the

period was $3,505,000.$

PLEASE HELP ASAPPP

$($a$)$

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

Dividends on preferred shares $

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