1. Lancaster Company had earnings net of tax but before extraordinary items of $500,000. They had an extraordinary loss net of tax of $100,000. Lancaster had a weighted average number of shares of 200,000 common shares. They also had 10,000 shares of convertible $100 par preferred stock, 6%, with one years dividend in arrears, convertible into 20,000 shares of common stock. Their tax rate is 40%.

Show in good format all earnings per share calculations necessary.