Question 1 The following data relate to Katy Company for the current year, year end being December 31. 20,000 shares of common stock outstanding at the beginning of the year July 1-issued 5,000 shares of common stock October 1-declared 2-for-1 stock split $4,000 in preferred dividends paid during the past year $80,000 net income Average market price on common stock during the past year, $18 Year-end market price on common stock, $20 (Required) A. Compute the basic earnings per share. B. Compute the diluted earnings per share