=+E9-22 Earnings pershare Ob] 3 y

b. Earnings per share on common stock,

$3.00 The net income reported on the income statement ofGround Hog Co. was $1,250,000. There were 250,000 shares of $40 par common stock and 50,000 shares of $10 preferred stock out¬

standing throughout the current year. The income statement included two extraordinary items:

a $360,000 gain from condemnation ofland and a $235,000 loss arising from flood damage, both after applicable income tax. Determine the per share figures for common stock for

(a) income before extraordinary items and

(b) net income.