When Crossett Corporation was organized in January, Year $1,$ it immediately issued $4,400$ shares of $$47$ par, $6$ percent,

cumulative preferred stock and $10,500$ shares of $$9$ par common stock. Its earnings history is as follows: Year $1,$ net loss of

$$12,000$; Year $2,$ net income of $$122,000$; Year $3,$ net income of $$222,000.$ 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 $$55,000$ 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?

Assume that the board of directors declares a $$55,000$ cash dividend at the end of Yea

$2$ preferred dividends are due$).$ How will the dividend be divided between the preferrec