1. Rawlings Company has the following equity accounts at the beginning and end of 20X3:

   	1/1/X3	12/31/X3
   Preferred Stock, 6%, $100 par value	$2,000,000	$2,000,000
   Common Stock, $1 Par Value	$160,000	$200,000
   Capital in Excess of Par, Common	$12,000,000	$16,000,000
   Retained Earnings	$1,100,000	$1,800,000

   The additional 40,000 shares of common stock were issued on September 1, 20X3. Preferred stock was paid its dividend during the year. Net income for the year was $1,200,000.

   Determine Rawlings basic EPS on December 31, 20X3.