When Crossett Corporation was organized in January, Year 1, it immediately issued 4,400 shares of $48 par, 5 percent, cumulative preferred stock and 8.500 shares of $14 par common stock. Its earnings history is as follows: Year 1, net loss of $14,600; Year 2, net income of $110,000; Year 3, net income of $80,300. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? Dividend arrearage tes b. Assume that the board of directors declares a $31,620 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 dintributed to common shares