When Crossett Corporation was organized in January. Year 1, it immediately issued 4,000 shares of $48 par, 6 percent, cumulative preferred stock and 11,000 shares of $5 par common stock. Its earnings history is as follows: Year 1, net loss of $13,000; Year 2, net income of $125,000; 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 $56,000 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?