B points Skipped eBook Up3 Help Save & Ext Submit Check my work When Crossett Corporation was organized in January, Year 1, it immediately issued 4,000 shares of $50 par 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: Year 1, net loss of $35,000 Year 2, net income of $125,000; Year 3, net income of $215,000. The corporation did not pay a dividend in Year Required a. How much is the dividend arrearage as of January 1, Year 27 Dividend amearage 14 Print References b. Assume that the board of directors declares a $25,000 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