At December 31, 2016, Riel Corp.had 300,000 common shares outstanding.No additional common shares were issued during 2017.On January 1, 2017, Riel issued 400,000 non-cumulative, non-convertible preferred shares.During 2017, Riel paid cash dividends of $180,000 to the common shares and $150,000 to the preferred shares.Net income for calendar 2017, was $480,000.Their income tax rate is 40%.Basic earnings per share for 2014 is

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Quizplus · Accepted Answer

Basic earnings per share = Net income - Preferred dividends / Weighted average number of common shares outstanding= (480,000 - 150,000) / 300,000= $1.10