For the year ended December 31, 2020, Joey Co. reported Net Income of $1,600,000. At January 1, 2020 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 2020 and the preferred stock is non-convertible. The following changes in the number of shares occurred during 2020:

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

May 31: Declared and Distributed a 20% Stock Dividend

July 1: Issued 80,000 shares of common stock

1. Compute Joey Cos Basic earnings per share for the year ended December 31, 2020.

2. Given the facts as presented above, Joey Co would have to report Diluted EPS at 12/31/2020. TRUE or FALSE [Circle One] (A) Briefly explain why you chose True or False