When Crossett Corporation was organized in January, Year $1,$ it immediately issued $4,000$ shares of $$45$ par, $7$ percent, cumulative preferred stock and $10,500$ shares of $$10$ par common stock. Its earnings history is as follows: Year $1,$ net loss of $$14,000$; Year $2,$ net income of $$123,000$; Year $3,$ net income of $$214,000.$ The corporation did not pay a dividend in Year $1.$

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

Q$2$ 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?