1.Compute Earnings Per Share using the information below:

Net income for the year 2018: $1,500,000

6% cumulative preferred stock outstanding on December 31, 2018: $3,000,000

$15 par value common stock outstanding on December 31, 2018: $2,376,000

The numbers of shares of both types of stock are same as they were on January 01, 2018 because the company has not issued any new shares of common or preferred stock during the year.