On January 1, 2008, ABC Corporation had 10,000 shares of common stock and 2,000 shares of cumulative preferred stock outstanding. Each share of preferred stock is entitled to $2 of cash dividends per year. Because of cash flow issues, ABC only declared and paid $0.50 of cash dividends to each share of preferred stock in 2008. Net income for 2008 was $100,000. What was basic EPS for 2008

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of