At the end of 20X6, the records of Security Systems Corp. showed the following:

Required:Compute basic EPS. Show computations.

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Bonds payable, 9%, nonconvertible Preferred shares: Class A, no-par, $0.80, nonconvertible, noncumulative, outstanding 80,000 shares Class B, no-par, $0.90, nonconvertible, cumulative, outstanding 40,000 shares Common shares, no-par, authorized unlimited shares: Outstanding 1 January, 150,000 shares Retired shares 1 May, 40,000 shares Issued a 200% stock dividend on 1 November, on outstanding shares Retained earnings (no dividends declared) Earnings from continuing operations, after income taxes Discontinued operations, net of tax Net earnings $1,875,000 (453,834) $ 450,000 400,000 700,000 1,394,715 2,130,000 $164,250 19,000 $ 183,250