Farrah Corporation had 24,420 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Farrah issued 1,000 shares of convertible preferred stock. The preferred shares are convertible into 3,540 shares of common stock. During the year Farrah paid $15,470 cash dividends on the preferred stock and $26,920 cash dividends on common stock. Net income was $157,750. What is the numerator for the basic EPS calculation