Graham, Inc. began 2017 with 25,000 common shares outstanding and issued a 20% stock dividend on August 1.
The company issued 6,000 shares on December 1. Graham also has 18,000 shares of 9%, $20 par, cumulative preferred stock outstanding on which no dividends have been paid during either 2016 or 2017. Net income for 2017 was $175,600.
Required:
Compute Graham, Inc.'s basic earnings per share for 2017.

Question

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The Answer of Graham, Inc. began 2017 with 25,000 common shares outstanding and issued a 20% stock dividend on August 1.
The company issued 6,000 shares on December 1. Graham also has 18,000 shares of 9%, $20 par, cumulative preferred stock outstanding on which no dividends have been paid during either 2016 or 2017. Net income for 2017 was $175,600.
Required:
Compute Graham, Inc.'s basic earnings per share for 2017.