On January 1, 20x0, Chang Corp. had 480,000 shares of common stock outstanding. During 20x0, it had the following transactions that affected the common stock account. Feb. 1: Issued 120,000 shares Mar. 1: Issued a 20% stock dividend May 1: Acquired 100,000 shares of treasury stock Jun. 1: Issued a 3-for-1 stock split Oct. 1: Reissued 60,000 shares of treasury stock

a. Determine the weighted-average number of shares outstanding as of December 31, 20x0.

b. Assume that Chang Corp. earned net income of $3,256,000 during 20x0. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 20x0. Compute earnings per share for 20x0, using the weighted-average number of shares determined in part a.

c. Assume the same facts as in part b, except that the preferred stock was cumulative. Compute earnings per share for 20x0.