Umbrellas Unlimited Ltd. (UUL) was incorporated on January 1, 2018. At that time, it issued 100,000 ordinary shares; 10,000, $100, 4% preferred shares “A”; and 20,000, $100, 5% preferred shares “B.” Net income for the year ended December 31, 2018, was $200,000. UUL neither declares nor pays dividends during the year.

The following are three independent situations:

a. Both the preferred shares Series A and B are cumulative in nature. Series A must be fully paid their current entitlement as well as any arrears before any monies are paid to the Series B shareholders. 

b. The Series A preferred shares are cumulative and the Series B preferred shares are noncumulative. Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders. 

c. Both the preferred shares Series A and B are non-cumulative in nature. Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders.

Required:

For each of these three independent situations, compute basic EPS.