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  3. at january 1, 2014, langley companys outstanding s

At January 1, 2014, Langley Companys outstanding shares included the following. ...

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Accounting

At January 1, 2014, Langley Companys outstanding shares included the following.

356,000 shares of $50 par value, 7% cumulative preferred stock
812,000 shares of $1 par value common stock

Net income for 2014 was $3,620,000. No cash dividends were declared or paid during 2014. On February 15, 2015, however, all preferred dividends in arrears were paid, together with a 6% stock dividend on common shares. There were no dividends in arrears prior to 2014. On April 1, 2014, 539,000 shares of common stock were sold for $10 per share, and on October 1, 2014, 114,000 shares of common stock were purchased for $23 per share and held as treasury stock. Compute earnings per share for 2014. Assume that financial statements for 2014 were issued in March 2015.

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