Whispering Corporation reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2020 balance sheet as follows:

Long Term Liabilities:
Bonds Payable		$7,500,000
9% interest, convertible to 25 common shares/$1,000 bond
Bonds Payable		$4,600,000
5% interest, convertible to 30 common shares/$1,000 bond
Shareholders' Equity:
Class A Preferred shares		$5,000,000
$3.90 cumulative preferred share convertible into 7 common shares, 102,000 authorized, issued and outstanding
Class B Common shares		$28,920,000
Unlimited number authorized 4,820,000 issued and outstanding

All of the above reported bonds payable, preferred shares and common shares were outstanding throughout the entirety of fiscal 2020. No transactions involving the bonds payable, preferred shares or common shares occurred during fiscal 2020, except for interest on the bonds payable. The bonds payable were all issued and sold at par. Whispering also had Class B common stock options to purchase 280,000 common shares at $10.00 per share outstanding throughout fiscal 2020. No stock options were exercised during fiscal 2020. The fair market value of Whispering's common shares was $15.00 per share throughout the entirety of fiscal 2020. Whisperings income tax rate is 37%. The weighted average of common shares outstanding for 2020 was 4,820,000 common shares, and Whispering earned net income of $11,329,560.

(a1)

Calculate the income effect of the dividends on Class A preferred shares.

Dividends on preferred shares

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