Net income after tax = $1,456.000

Common shares outstanding at the beginning of the

year = 325,460 shares

In addition the following stock changes occurred

during the year:

July 1 shares reacquired into treasury stock = 48,705

The following dividend was declared to preferred

shareholders:

Number of cumulative, non-convertible preferred

shares, $2.00 par value per share = 280,000 shares

outstanding all year

Dividend declared to preferred shareholders = 3% of

par value.

Compute basic earnings per share