Seved 14 - Chapters 9, 10, 11 22 When Crossett Corporation was organized in January, Year 1, it immediately Issued 5,600 shares of $50 par, 7 percent, cumulative preferred stock and 9,500 shares of $6 par common stock. Its earnings history is as follows: Year 1. net loss of $12,200; Year 2 net Income of $114,000; Year 3, net income of $91,600. The corporation did not pay a dividend in Year 1, Required a. How much is the dividend arrearage as of January 1, Year 2? 00:58:38 Dividend armorage b. Assume that the board of directors declares a $54,200 cash dividend at the end of Year 2 (remember tha Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Toll amount distributed to preferred shares Total amount distributed to common shares