Kelley Company reports $960,000 of net income for 2016 and declares $120,000 of cash dividends on its

Question:

Kelley Company reports $960,000 of net income for 2016 and declares $120,000 of cash dividends on its preferred stock for 2016. At the end of 2016, the company had 400,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders for 2016?
2. What is the company's basic EPS for 2016? Round your answer to the nearest whole cent.