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Question(s) / Instruction(s):

A corporation has net income of $200,000 for the current year. The corporation has 5,000 shares of cumulative, 5%, $100 preferred stock and 20,000 shares of $20 par common stock outstanding for all of the year. What is the numerator to be used in the earnings per share calculation?  

a)            The numerator is $225,000.  

b)            The numerator is $200,000.  

c)            The numerator is $195,000.  

d)            The numerator is $175,000.  


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