Oriole Corporation had net income of $$48,000$ for the year ended December $31,2023,$ and weighted average number of common shares outstanding of $10,000.$ The following information is provided regarding the capital structure:

$7\%$ convertible debt, $250$ bonds each convertible into $43$ common shares. The bonds were outstanding for the entire year. The income tax rate is $40\%.$ The bonds were issued at par $($ $$1,070$ per bond$).$ No bonds were converted during the year.

$3\%$ convertible, cumulative $$100$ preferred shares, $1,000$ shares issued and outstanding. Each preferred share is convertible into $2$ common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year.

$($a$1)$

Calculate the income effect of the dividends on preferred shares.

Dividends on preferred shares