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The Becket Company lists the following stockholders' equity items on 12/31/22: begin{tabular}{|l|l|l|} hline 6% Preferred Stock, $100 par, 50,000 shares authorized, 12,000 shares issued

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The Becket Company lists the following stockholders' equity items on 12/31/22: \begin{tabular}{|l|l|l|} \hline 6% Preferred Stock, $100 par, 50,000 shares authorized, 12,000 shares issued \\ \hline Common Stock, $10 par, 500,000 shares authorized, 320,000 shares issued \\ \hline & Paid-in Capital in excess of par - Preferred \\ \hline & Paid-in Capital in excess of par - Common \\ \hline & Paid-in Capital - Treasury Stock Transactions & 3,200,000 \\ \hline & Paid-in Capital - Stock Options & 1,125,000 \\ \hline & Retained Earnings & 2,460,000 \\ \hline & Less: Treasury stock (4,500 shares at cost) & 22,500 \\ \hline & 40,000 \\ \hline Total Stockholders' Equity & 1,946,730 \\ \hline \end{tabular} The following information is also available: (1) Net income for 2022 was $523,400. (2) The market price of the common stock at 12/31/22 is $56.30 per share, and the market price of the preferred stock is $105. The average price of the common stock during 2022 was $54.70. (3) Becket's income tax rate for 2022 is 21%. (4) There was no change in the number of common shares outstanding for 2022. (5) On 1/1/21, Becket established a stock option plan for certain key executives. Five executives were each given the right to purchase 2,000 shares of Becket common stock at a price of $35. The market price of the common stock on the date of grant was $25.00 and the market value of the options is $4. The options may be exercised any time after 1/1/23, and the executives musa be in Becket's employ at the time of exercise. The service period is considered to be two years. (6) Becket's preferred stock is cumulative and convertible. Each share of preferred stock is convertible into 5 shares of eommon stock. (7) In addition to the dilutive equity securities discussed above, Becket had two issues of convertible bonds outstanding for the period: (a) Becket had $1,500,000 of 7% convertible bonds. The bonds were issued at par. Each $1,000 bond is convertible into 35 shares of common stock. (b) Becket also had $1,000,000 of 6% convertible bonds. Bond interest expense each year is increased by $500 amortization of the discount. Each $1,000 bond is convertible into 50 shares of common stock. Required: a) Compute Becket's carnings per share for 2022. b) Show the income satement presentation of Becket's earnings per share. c) Prepare the required disclosure for cumings per share, as it might appear in Becket's anbual report

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