When Crossett Corporation was organized in January, Year $1,$ it immediately issued $4,100$ shares of $$52$ par, $5$ percent, cumulative preferred stock and $10,000$ shares of $$11$ par common stock. Its earnings history is as follows: Year $1,$ net loss of $$15,000$; Year $2,$ net income of $$124,000$; Year $3,$ net income of $$220,000.$ 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 $$54,500$ 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?