Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of $100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows:
For 2011, Ponce Towers, Inc., had income from continuing operations of $545,000 and a $72,000 loss from discontinued operations (net of tax).
As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.