On December 31, 2017, Arthur Company had outstanding 400,000 shares of common stock and 40,000 shares of

8% cumulative preferred stock (par $10). On February 28, 2018, Merlin issued an additional 36,000 shares of common stock.

On September 1, 2018, 9,000 shares were retired. Net income was $900,000. A 10% stock dividend was

declared and distributed on July 1, 2018

What is the basic EPS for the year ended December 31, 2018 for Arthur Company?