1. Olive Company information is noted below:

   	20X2	20X1
   Net Income	$150,000	$120,000
   Cash dividends paid on preferred stock	15,000	15,000
   Cash dividends paid on common stock	42,000	38,000
   Average number of preferred shares outstanding	20,000	20,000
   Average number of common shares outstanding	105,000	95,000
   Market price per share of common stock at year-end	25.10	22.70

   Earnings per share (rounded) for 20X2 would be reported as ___________________ and note if the level of profitability per share has increased or decreased from the prior year.

   	a.	$1.11 and profitability has decreased.
   	b.	$1.43 and profitability has decreased.
   	c.	$1.20 and profitability has increased.
   	d.	$1.29 and profitability has increased.