At December 31, 2011 and 2010, Lapham Corp. had 200,000 shares of common stock and 20,000 shares of 5 percent, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2010 or 2011. Net income for 2011 was $1,000,000. For 2011, basic earnings per common share amounted to
A) $5.00.
B) $4.75.
C) $4.50.
D) $4.00.

Question

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The Answer of At December 31, 2011 and 2010, Lapham Corp. had 200,000 shares of common stock and 20,000 shares of 5 percent, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2010 or 2011. Net income for 2011 was $1,000,000. For 2011, basic earnings per common share amounted to
A) $5.00.
B) $4.75.
C) $4.50.
D) $4.00.