Wallace and Junkyard

1. Wallace inc., a developer of radiology equipment, has stock outstanding as follows: 30,000 shares of cumulative preferred 2% stock, $90 par and 125,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $24,000; second year, $81,000; third year, $92,000; fourth year, $139,000. Calculate the dividends per share on each class of stock for each of the four years.

2. Junkyard Arts, Inc had earnings of $316,000 for 2014. The company had 40,000 shares of common stock outstanding during the year. In addition, the company issued 15,000 shares of $50 par value preferred stock on January 9, 2014. The preferred stock has a dividend of $1.60 per share. There were no transactions in either common or preferred stock during 2014. Determine the basic earnings per share for Junkyard Arts.