When Crossett Corporation was organized in January. Year 1, it immediately issued 5,600 shares of $50 par, 5 percent, cumulative preferred stock and 11,000 shares of $10 par common stock. Its earnings history is as follows: Year 1, net loss of $17,500, Year 2, net income of $110,000, Year 3, net Income of $88,400. The corporation did not pay a dividend in Year 1 Required a. How much is the dividend arrearage as of January 1. Year 2? Ovidend arrearage b. Assume that the board of directors declares a $43,000 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? Total amount distributed to preferred shares Total amount distributed to common shares