When Crossett Corporation was organized in January 2016, it immediately issued 5,600 shares of $55 par 6 percent, cumulative preferred stock and 10,500 shares of $7 par common stock. Its earnings history is as follows: 2016, net loss of $13,900; 2017, net income of $56,700; 2018, net income of $84,300. The corporation did not pay a dividend in 2016 Required a. How much is the dividend arrearage as of January 1, 2017? Dividend arrearage b. Assume that the board of directors declares a $54,960 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? (Amounts to be deducted should be indicated with minus sign.) Distributed to Shareholders Preferred Common Amount Total dividend declared 2016 Arrearage 2017 Preferred dividends Available for comm Distributed to common Total distribution on 0 0