Transcribed Image Text
In: AccountingPresented below is information related to Starr Company.1.Net Income [including a discontinued operationsgain...Presented below is information related to Starr Company.1.Net Income [including a discontinued operationsgain (net of tax) of $84,000]$258,5002.Capital Structurea.Cumulative 5% preferred stock, $100 par, 6,100 shares issuedand outstanding$610,000b.$10 par common stock, 74,000 shares outstanding on January 1.On April 1, 40,000 shares were issued for cash. On October 1,16,000 shares were purchased and retired.$1,000,000c.On January 2 of the current year, Starr purchased OsloCorporation. One of the terms of the purchase was that if Oslo netincome for the following year is $244,000 or more, 50,000additional shares would be issued to Oslo stockholders next year.Oslo’s net income for the current year was $2,600,000.3.Other Informationa.Average market price per share of common stock during entireyear$30b.Income tax rate30%Compute weighted average shares outstanding.Weighted average shares outstandingCompute earnings per share for the current year.(Round answers to 2 decimal places, e.g.52.75.)Basic earnings per share$Diluted earnings per share$