Acc423 Intermediate Accounting: Flagstad Inc. presented the following data

Acc423 Intermediate Accounting

E16-19 (EPS: Simple Capital Structure)
Flagstad Inc. presented the following data.
Net Income 2,500,000
Preferred stock: 50,000 shares outstanding,
$100 par, 8% cumulative, not convertible 5,000,000
Common stock: Shares outstanding 1/1 750,000
Issued for cash, 5/1 300,000
Acquired treasury stock for cash, 8/1 150,000
2-for-1 stock split, 10/1

Instructions:
Compute earnings per share.
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