Weighted Average Shares Jumbo Corporation reported the following information about its stock on its Decem$-$

ber $31,2018,$ balance sheet:

Preferred stock, $$100$ par value, $6\%$ cumulative, $30,000$ shares authorized $1,000$ shares issued

and outstanding

Common stock, $$10$ par value, $150,000$ shares authorized $50,000$ shares issued and outstanding $$100,000$

$500,000$

Jumbo Corporation engaged in the following stock transactions during $2019$:

Mar. $1$ Issued $10,000$ shares of common stock for cash.

Apr. I Purchased $2,000$ shares of commen stock as treasury stock.

Aug. $1$ Resold $1,000$ shares of treasury stock.

Sept. $1$ Declared and distributed a $50\%$ stock dividend on common stock.

Required:

Does Jumbo Corporation have a simple or complex capital structure?

Calculate the number of shares that Jumbo would use to calculate basic EPS for its $2019$ income statement.

Assume that the $$900,000$ net income reported by Jumbo Corp. for $2019$ includes a $$7,800$ loss

from discontinued operations, net of tax. Compute the $2019$ basic earnings per share.