When Crossett Corporation was organized in January, Year 1, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 por common stock. Its earnings history is as follows: Year 1, net loss of $35,000, Year 2, net income of $125,000, Year 3, net Income of $215,000. The corporation did not pay a dividend in Year 1 Required e. How much is the dividend arrearage as of January 1, Year 2 b. Assume that the board of directors declares a $40,000 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 Assume that the board of directors declares a $40,000 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? Distribution to Sholders Amount Preferred Common Tutal dividend declared 25.000 Year 1 Ararage (12.000) 12,000 Year 2 Preferred dividends (12.000) 12,000 Palable for common 1.000 Distributed to commun Total distribution (1.000 0 24.000