When Crossett Corporation was organized in January 2016, it immediately issued 5,400 shares of $50 par, 7 percent, cumulative preferred stock and 11,000 shares of $11 par common stock. Its earnings history is as follows: 2016, net loss of $12,300; 2017, net income of $55,600; 2018, net income of $113,900. The corporation did not pay a dividend in 2016.

How much is the dividend arrearage as of January 1, 2017?

Assume that the board of directors declares a $53,300 cash dividend at the end of 2017 (remember that the 2016 and 2017 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders?