At the beginning of 2021, P3 had 122,000 shares of treasury stock that it had purchased in 2015 for $9 dollars per share. P3 uses the cost method to account for treasury stock transactions. During 2021, P3 reissued 46,000 shares of the treasure stock for

Arianna Accountant, CFO for P3 believes there is an error in the 2018 calculation of the P3 earnings per share. The reported EPS was $0.89. Based on the following information, determine if the reported 2018 EPS was correct and if not, what the correct amount should have been.

January 1 8,000,000 shares common stock outstanding

March 1 500,000 treasury stock shares purchased

July 1 20% stock dividend

September 1 400,000 shares common stock issued

December 1 300,000 treasury shares reissued

Jan. 1 - Dec. 31 Preferred stock, $100 par, 10%, 1,000,000 shares authorized, 200,000 issued and outstanding

Net Income 12/31/18 $14,568,000