Wong’s Lingerie Inc. (WLI) has been in business for over 10 years. As at January 1, 2018, its capital structure consisted of 200,000 ordinary shares; $500,000 of 4% non-cumulative preferred shares; and 20,000, $100, 3% cumulative preferred shares. Net income for the year ended December 31, 2018, was $800,000. Dividends were last declared and paid in full in 2016. During 2018, WLI declared and paid a total of $180,000 in dividends.

Required:

a. Compute WLI’s basic EPS for 2018.

b. How much in dividends did each ordinary shareholder receive in 2018?