Sheridan Corporation is preparing earnings per share data for 2023. The net income for the year ended December 31, 2023, was $394,000 and there were 59,000 common shares outstanding during the entire year. Sheridan has the following two convertible securities outstanding: 11% convertible bonds (each $1,000 bond is convertible into 25 common shares) $100,000$50,000 5%convertible$100parvaluepreferredshares(eachshareisconvertibleinto2commonshares)$50,000 Both convertible securities were issued at face value in 2024 . Sheridan's income tax rate is 24%. The preferred shares are cumulativ For simplicity, ignore the requirement to record the debt and equity components of the bonds separately. Assume that 40\% of the convertible bonds were converted to common shares on April 1, 2023. The balances at December 31, 2023 do not reflect the conversion of April 1, 2023. (a) (b1) Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares \$