Range Energy Corp.s financial statements for the current year ended December 31, 2017, have been completed and submitted to you for review. The equity account balances a year ago, at December 31, 2016, are as follows:

Preferred shares, $4.20 non-cumulative, 10,700 shares authorized,

issued, and outstanding $755,050

Common shares, unlimited shares authorized,

127,000 shares issued and outstanding 1,434,350

Retained earnings 686,295

The only share transactions during 2017 were the declaration and distribution of a 25,400 common share dividend on July 1 and the issuance of 14,100 common shares for cash on October 31. The companys 2017 profit was $624,380. A cash dividend on the preferred shares was declared on December 1, but was not paid as of December 31. Earnings per share for 2017 were calculated as follows:

Profit

=

$624,380

= $3.75

Common shares outstanding on Dec. 31, 2017 166,500

Required:

1-a. The earnings per share is incorrect. Indicate what changes should be made to the numerator and the denominator?

1-b. Calculate the correct EPS.