1. $256,500 2. a. $650,000 $1,000,000 C. Net Income [including a discontinued operations gain (net of tax) of $80,000] Capital Structure Cumulative 5% preferred stock, $100 par, 6,500 shares issued and outstanding b. $10 par common stock, 74,000 shares outstanding on January 1. On April 1, 40,000 shares were issued for cash. On October 1, 16,000 shares were purchased and retired. On January 2 of the current year, Starr purchased Oslo Corporation. One of the terms of the purchase was that if Oslo net income for the following year is $244,000 or more, 60,000 additional shares would be issued to Oslo stockholders next year. Oslo's net income for the current year was $2,600,000. Other Information a. Average market price per share of common stock during entire year b. Income tax rate 3. $30 30% Compute weighted average shares outstanding. Weighted average shares outstanding e Textbook and Media Save for Later Part 2 Compute earnings per share for the current year. (Round answers to 2 decimal places Basic earnings per share $ Diluted earnings per share $ e Textbook and Media