The following information is for Oriole Limited for $2023$:

Net income for the year

$8\%$ convertible bonds issued at par $($ $$1,000$ per bond$),$ with each bond

convertible into $40$ common shares

$6\%$ convertible, cumulative preferred shares, $$100$ par value, with each share

convertible into $3$ common shares

Common shares $(650,000$ shares outstanding$)$

Stock options $($granted in a prior year$)$ to purchase $70,000$ common shares at

$$15$ per share

Tax rate for $2023$

Average market price of common shares

$$2,159,300$

$2,140,000$

$4,030,000$

$6,500,000$

$550,000$

$30\%$

$$20$ per share

There were no changes during $2023$ in the number of common shares, preferred shares, or convertible bonds outstanding. For

simplicity, ignore the requirement to book the convertible bonds' equity portion separately.

$($a$1)$

Calculate the income effect of the dividends on preferred shares.