Calculating EPS: Simple Capital Structure

Select Corporation was incorporated on January 2, 2020. The following information pertains to Select Corporation's 2020 common stock transactions.

Jan.	2	Number of shares authorized	500,000
Jan.	2	Number of shares issued	170,000
Jul.	1	Number of shares reacquired but not canceled	10,000
Sept.	1	Two-for-one stock split
Dec.	1	Reissued shares of treasury stock	10,000

Required

a. Determine the weighted-average number of shares of Select Corporation's common stock outstanding.

b. Compute earnings per share for 2020 considering the following additional information:

1. Net income: $627,000
2. Preferred stock, 5%, cumulative, 10,000 shares outstanding, $10 par value per share
3. Preferred stock dividends declared in 2020: $0