solve all parts and show work with formulas. problem 2.

When Crossett Corporation was organized in January Year 1 , it immed,ately issued 4,000 shares of $50 pac, 6 percent, cumulative preferred stock and $0,000 shares of $20 par common stock \begin{tabular}{|r|r|r|r|r|} \hline 4,000 & $50 & 6% & 50,000 & $20 \\ \hline 35,000 & $125,000 & $215,000 & \\ \hline 525,000 & & \\ \hline \end{tabular} Its earnings history is as follows: Year 1, net loss of $35,000; Year 2, net income of 5125,000 ; Year 3, net income of $215,000. The corporation did not pay a dividend in Year 1 . Required (Use the cells from the Even information above to complete this question.) a How much is the dividend arrearnge as of lanuary 1, Year 2? b. Assume thut the board of directors declares a $25,000 cash dividend at the end of Year 2 (remember thet the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stochtholders? (Use the cells from the given information and from Required A to complete this question.) (Amounts to be deducted should be indicated with a minus sign.)