The Frank Company has issued 10%, fully participating, cumulative preferred stock with a total par value of $300,000 and common stock with a total par value of $900,000. Dividends for one previous year are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $222,000 are distributed at the end of the current year?

a) $85,500 to preferred and $136,500 to common

b) $78,000 to preferred and $144,000 to common

c) $55,500 to preferred and $166,500 to common

d) $60,000 to preferred and $162,000 to common

I believe the correct answer is B ($78,000 to preferred and $144,000 to common). Can I please see the work for solving this problem. I'm having trouble understanding the role of dividends in arrears in this problem.