Wildhorse Inc. had net income for the fiscal year ended June 30,2023 , of $6,300,000. There were 500,000 common shares outstanding throughout 2023. The average market price of the common shares for the entire fiscal year was $80. Wildhorse's tax rate was 25% for 2023. Wildhorse had the following potential common shares outstanding during 2023: 1. Options to buy 200,000 common shares at $40 per share. 2. 200,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. 3. 5% convertible bonds with a principal amount of $31,300,000, issued at par. Each $1,000 bond is convertible into 25 common shares. (a1) Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $