Help solve problem 2

Presented below is information related to Cullumber Company. Testbank Problem 142 Testbank Problem 147 1. Net Income [including a discontinued operations gain (net of tax) of $42,000] $195,500 Review Score 2. Capital Structure Review Results by Study a. Cumulative 5% preferred stock, $100 par, 5,500 shares issued and outstanding $550,000 Objective b. $10 par common stock, 74,000 shares outstanding on January 1. On April 1, 40,000 shares were issued for cash. On October 1, 16,000 shares were $1,000,000 purchased and retired. c. On January 2 of the current year, Cullumber purchased Oslo Corporation. One of the terms of the purchase was that if Oslo net income for the following year is $243,000 or more, 40,000 additional shares would be issued to Oslo stockholders next year. Oslo's net income for the current year was $2,600,000. 3. Other Information a. Average market price per share of common stock during entire year $30 b. Income tax rate 30% Compute weighted average shares outstanding. Weighted average shares outstanding Compute earnings per share for the current year. (Round answers to 2 decimal places, e.g. 52.75.) Basic earnings per share $ Diluted earnings per share $