When Crossett Corporation was organized in January, Year 1, it immediately issued 5,800 shares of $54 par, 7 percent, cumulative preferred stock and 10,500 shares of $11 par common stock. Its earnings history is as follows: Year 1, net loss of $17,900; Year 2, net income of $102,000; Year 3, net income of $112,200. 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 $ 21,924 b. Assume that the board of directors declares a $56,348 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