When Crossett Corporation was organized in January Year $1,$ it immediately issued $4,900$ shares of $$52$ par, $7$ percent, cumulative preferred stock and $8,500$ shares of $$13$ par common stock. Its earnings history is as follows: Year $1,$ net loss of $$15,500$; Year $2,$ net income of $$61,900$; Year $3,$ net income of $$93,200.$ The corporation did not pay a dividend in Year $1.$

Required

a$.$ How much is the dividend arrearage as of January $1,$ Year $2?$

b$.$ Assume that the board of directors declares a $$45,672$ cash dividend at the end of Year $2($remember that the Year $1$ and Year $2$ preferred dividends are due$).$ How will the dividend be divided between the preferred and common stockholders?

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How much is the dividend arrearage as of January $1$; Year $2?($Do not round your intermediate calculations.$)$

Dividend arrearage