Gerald Ltd had a net profit after tax of $1,000,000 for the year ended 30 June 2019. Details of the shares and other financial instruments outstanding are as follows: As at 1 July 2018 Gerald Ltd had 200,000 fully paid ordinary shares. On 1 September 2018, 100,000 fully paid ordinary shares were issued at the prevailing market price. On 1 February 2019, 25,000 fully paid ordinary shares were bought back at the prevailing market price. On 1 April 2019, 70,000 partly paid ordinary shares were issued at a price of $2.00. The shares were partly paid to $1.30 and carried the right to participate in dividends in proportion to the amount paid as a fraction of the issue price. For the entire year, 1 million $1.00 preference shares were held which provided a dividend at a rate of 10% per annum. The preference shares are convertible at a rate of 1 ordinary share for every 10 preference shares. There are options to purchase 20,000 ordinary shares issued at a price of $3. On 30 June 2019, the ordinary shares were trading at $4. Additional Information: 28 days Feb; 30 days Sept, Nov, April, June; 31 days Oct, Dec, Jan, Mar, May, July, August. As part of the calculation of the diluted earnings per share for the year ended 30 June 2019, what is the dollar amount of preference dividends that would be saved? Select one: $100,000 $1,100,000 $1,000,000 $10,000,000