At December 31, 2009 and 2008, G Co

Multiple Choice

At December 31, 2009 and 2008, G Co. had 50,000 shares of common stock and 5,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2009 or 2008. Net income for 2009 was $500,000. For 2009, basic earnings per common share amounted to:

A) $ 5.00.
B) $ 9.50.
C) $ 9.00.
D) $10.00.Even though no dividends were declared, the preferred dividends are subtracted from the numerator since the preferred shares are cumulative.