For the year ended September 30, 2014 Queylus Inc. (Queylus) reported net income of \($1,278,000\). On September 30, 2013 Queylus had the following capital stock outstanding:

On January 31, 2014 Queylus issued 500,000 common shares for \($12\) per share and on June 30, 2014 it issued 250,000 common shares for \($11.75\) per share.
Required:

a. Calculate Queylus’s basic earnings per share for the year ended September 30, 2014.

b. How much of a dividend should Queylus’s shareholders expect to receive in 2015?

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Preferred shares, no par, $1 annual dividend, cumulative, 100,000 shares authorized; shares issued, and 75,000 shares issued and outstanding Common shares, no par, authorized 10,000,000 shares authorized; 4,800,000 shares issued and outstanding $1,500,000 6,000,000