Chapter 19, Problem 19.14E

EPS; stock dividend; nonconvertible preferred stock

• LO19–5, LO19–6, LO19–7

Hardaway Fixtures’ balance sheet at December 31, 2017, included the following:

Shares issued and outstanding:    

Common stock, $1 par	$800,000
Nonconvertible preferred stock, $50 par	20,000

On July 21, 2018, Hardaway issued a 25% stock dividend on its common stock. On December 12, it paid $50,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2018, was $2,000,000.

Required:

Compute Hardaway’s earnings per share for the year ended December 31, 2018.