Steven Limited's net income for the year ended December $31,2023$ was $$650,250$ and there were $92,000$ common shares outstanding during the entire year. Steven has the following two convertible securities outstanding:$10\%$ convertible bonds $($each $$1,000$ bond is convertible into $20$ common shares$)$$$200,0005\%$ convertible $$100$ par value cumulative preferred shares $($each share is convertible into two common shares$)$$$125,000$Both convertible securities were issued at face value in $2020.$ There were no conversions during $2023,$ and Steven's income tax rate is $25\%.$

$($a$)$Your answer is correct.

Calculate the income effect of the dividends on $5\%$ preferred shares.Income effect of the dividends$$6250$