When Crossett Corporation was organized in January, Year 1, it immediately issued 4,100 shares of $52 par, 4 percent, cumulative preferred stock and 8,500 shares of $12 par common stock. Its earnings history is as follows: Year 1, net loss of $16,000; Year 2, net income of $120,000; Year 3, net income of $203,000. 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 $52,000 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? Complete this question by entering your answers in the tabs below. Required A Required B How much is the dividend arrearage as of January 1, Year 2? Dividend arrearage $ 8,528 Required A Required B Assume that the board of directors declares a $52,000 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? Distributed to Shareholders Amount Preferred Common Total dividend declared $ 4,100 Year 1 Arrearage (8,528) $ 8,528 0 Year 2 Preferred dividends (8,528) 8,528 0 Available for common Distributed to common Total distribution