When Crossett Corporation was organized in January, Year 1, it immediately issued 4,400 shares of $52 par, 7 percent, cumulative preferred stock and 8,000 shares of $7 par common stock. Its earnings history is as follows: Year 1, net loss of $14,000; Year 2, net income of $120,000: Year 3. net income of $207,000. 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 $53,000 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 Required A Required B > When Crossett Corporation was organized in January. Year 1, it immediately issued 4,400 shares of $52 par, 7 percent, cumulative preferred stock and 8,000 shares of $7 par common stock. Its earnings history is as follows: Year 1, net loss of $14,000; Year 2, net income of $120,000; Year 3, net income of $207,000. 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 $53,000 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 Assume that the board of directors declares a $53,000 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 Total dividend declared Year 1 Arrearage Year 2 Preferred dividends Available for common Distributed to common Total distribution Amount Preferred Common < Required A Required B>