Problem: Module 3 Textbook Problem 14 Learning Objective: 3-11 Differentiate between common and preferred stock When Crossett Corporation was organized in January. Year 1, it immediately issued 4,400 shares of $50 par, 7 percent, cumulative preferred stock and 12,000 shares of $14 par common stock. Its earnings history is as follows: Year 1, net loss of $13,000; Year 2, net income of $123,000; Year 3, net income of \$207,000. The corporation did not pay a dividend in Year 1 . Required a. How much is the dividend arrearage as of January 1, Year 2 ? b. Assume that the board of directors declares a $55,000 cash dividend at the end of Year 2 (remember that the Year fand Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Complete this question by entering your answers in the tabs below. How much is the cividend arrearege as of Lonuary 1, Year 27 a. nuw mucti is tite uiviueniu atteat age as ui Jativaty i, real \&f b. Assume that the board of directors declares a $55,000 cash dividend at the end of Year 2 (remember that the Year 1 and preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Complete this question by entering your answers in the tabs below. Assume that the board of directors declares a $55,000 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders