Problem 147 Presented below is information related to Starr Company. 1. Net Income [including a discontinued operations gain (net of tax) of $70,000] $352,000 2. Capital Structure a. Cumulative 5% preferred stock, $100 par, 5,800 shares issued and outstanding $580,000 b. $10 par common stock, 74,000 shares outstanding on January 1. On April 1, 40,000 shares were issued for cash. On October 1, 16,000 shares were purchased and retired. $1,000,000 c. On January 2 of the current year, Starr purchased Oslo Corporation. One of the terms of the purchase was that if Oslo net income for the following year is $237,000 or more, 60,000 additional shares would be issued to Oslo stockholders next year. Oslos net income for the current year was $2,600,000. 3. Other Information a. Average market price per share of common stock during entire year $30 b. Income tax rate 30% Compute weighted average shares outstanding. Weighted average shares outstanding Compute earnings per share for the current year. (Round answers to 2 decimal places, e.g. 52.75.) Basic earnings per share $ Diluted earnings per share $