On December 31, 2017, Witherspoon Services Had 800,000 Shares of Common

Essay

On December 31, 2017, Witherspoon Services had 800,000 shares of common stock and 200,000 shares of 5.5%, noncumulative, nonconvertible $10 par preferred stock issued and outstanding. On March 2, 2018, Witherspoon sold 120,000 common shares. In keeping with its long-term share repurchase plan, 30,000 shares were retired on August 31. Witherspoon distributed a 10% common stock dividend on June 3. Witherspoon's net income for the year ended December 31, 2016, was $600,000. The company paid cash dividends of $110,000 to preferred shareholders on December 20, 2018. The income tax rate is 40%.
Required:
Compute Witherspoon's earnings per share for the year ended December 31, 2018.