When Crossett Corporation was organized in January Year $1,$ it immediately issued $4,600$ shares of $$53$ par, $7$ percent, cumulative preferred stock and $8,500$ shares of $$14$ par common stock. Its earnings history is as follows: Year $1,$ net loss of $$16,000$; Year $2,$ net income of $$61,800$; Year $3,$ net income of $$112,600.$ The corporation did not pay a dividend in Year $1.$

Required

a$.$ How muh is the dividend arrearage as of January $1,$ Year $2?$

b$.$ Assume that the board of directors declares a $$46,132$ 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?