Kingery Corporation began the calendar (and fiscal) year with a simple structure consisting of 38,000 shares of common stock outstanding. On May 1, 10,000 additional shares were issued, and another 1,000 shares were issued on September 1. The company had a net income for the year of $234,000.

a. Compute the earnings per share of common stock.

b. Assume that the company also had 6,000 shares of 6%, $50 par value cumulative preferred stock outstanding throughout the year. Compute the basic earnings per share of common stock.