For the year ended December 31, 2016, Joey Co. reported Net Income of $800,000. At January 1, 2016 the company had 900,000 shares of common stock outstanding. Joey Co. also had $1,000,000 of 6% cumulative preferred stock. No preferred dividends were paid in 2016 and the preferred stock is non-convertible. The following changes in the number of shares occurred during 2016:

April 1: Sold 60,000 shares of common stock.

May 31: Declared and Distributed a 10% Stock Dividend

July 1: Issued 72,000 shares of common stock

Required:

1.	Compute Joey Cos earnings per share for the year ended December 31, 2016.
2.	Given the facts as presented above, Joey Co would have to report Diluted EPS at 12/31/2016. TRUE or FALSE [Circle One]
3)	Explain your answer in part 2 above (brief short answer)