Sunland Corporation had net income for the current year ending December $31,2023$ of $$1,203,000.$ Throughout $2023$ the following items were outstanding:

$400,000$ common shares

$21,000$ Class A $$3$ cumulative preferred shares that were convertible to common shares at a rate of $1$:$1$

$49,500$ Class B $$4$ non$-$cumulative preferred shares that were convertible at a rate of $1$ common share for every $2$ preferred shares.

$$507,500,8\%$ bonds that were convertible to $14,500$ common shares

$$340,000,10\%$ bonds convertible to $10,000$ common shares

No dividends were declared or paid in $2023.$ Sunland's tax rate is $25\%.$

$($a$)$

Calculate the income effect of the dividends for the Class A preferred shares.

Dividends on Class A preferred shares