Graham, Inc. began 2017 with 25,000 common shares outstanding and issued a 20% slock dividend on August 1. The company issued 6,000 shares on December 1. Graham also has 18,000 shares of 9%, $20 par, cumulative preferred stock outstanding on which no dividends have been paid during either 2016 or 2017. Net income for 2017 was $175,600. Required: Compute Graham, Inc.'s basic earnings per share for 2017. 5. Major Corporation had 50,000 shares of common stock outstanding during 2016 with the following characteristics: The company also has compensatory share options to purchase 5,000 shares of common stock at $40 a share during the year. The unrecognized compensation cost (net of tax) related to these share options is $5 per share. Net income for the year was $60,600. Required: Compute the basic and diluted earnings per share for Major Corporation