At year end Counter Top, Inc. has determined its net income to be $ 1 , 2

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At year end Counter Top, Inc. has determined its net income to be $ $1, 200, 000 .$ During the entire year, $20, 000$ shares of $8 %,$ $ $50$ par convertible preferred stock was outstanding. Each share of preferred will be eventually eligible to be exchanged for $20$ shares of $ $2$ par value common.