A company had the following stock outstanding during a year in which $800,000 of net income was reported: 20,000 shares of preferred stock, noncumulative, $50 par value, 7% dividend rate; 250,000 shares of common stock, $10 par value. The dividend on the preferred stock had not been declared at the end of the reporting period. No dividends have been paid on the preferred stock for the last 2 years. What is the amount of earnings per share for the year?

the answer is $3.20. I need detailed steps to show how this answer was found and what numbers they used.