On December 31,2015,Witherspoon Services had 800,000 shares of common stock and 200,000 shares of 5.5%,noncumulative,nonconvertible $10 par preferred stock issued and outstanding.
On March 2,2016,Witherspoon sold 120,000 common shares.In keeping with its long-term share repurchase plan,30,000 shares were retired on August 31.Witherspoon distributed a 10% common stock dividend on June 3.Witherspoon's net income for the year ended December 31,2014,was $600,000.The company paid cash dividends of $110,000 to preferred shareholders on December 20,2016.The income tax rate is 40%.
Required:
Compute Witherspoon's earnings per share for the year ended December 31,2016.

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The Answer of On December 31,2015,Witherspoon Services had 800,000 shares of common stock and 200,000 shares of 5.5%,noncumulative,nonconvertible $10 par preferred stock issued and outstanding.
On March 2,2016,Witherspoon sold 120,000 common shares.In keeping with its long-term share repurchase plan,30,000 shares were retired on August 31.Witherspoon distributed a 10% common stock dividend on June 3.Witherspoon's net income for the year ended December 31,2014,was $600,000.The company paid cash dividends of $110,000 to preferred shareholders on December 20,2016.The income tax rate is 40%.
Required:
Compute Witherspoon's earnings per share for the year ended December 31,2016.

On December 31,2015,Witherspoon Services Had 800,000 Shares of Common Stock