When Crossett Corporation was organized in January Year 1, it immediately issued 5,900 shares of $48 par, 5 percent, cumulative preferred stock and 9,500 shares of $12 par common stock. Its earnings history is as follows: Year 1 , net loss of $13,900; Year 2 , net income of $64,400; Year 3 , net income of $93,600. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1 , Year 2 ? Answer is complete and correct. b. Assume that the board of directors declares a $44,320 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? Answer is complete but not entirely correct