A20-16 Basic EPS (LO 20-2) The Duckworth Ltd. 20X5 financial statements include the following: Statement of comprehensive income Year ended 31 December 20X5 Earnings from continuing operations $ 3,316,000 Discontinued operations (net of tax) 442,000 Net earnings and comprehensive income $ 3,758,000 Statement of financial position 31 December 20X5 Bonds payable, 7%, nonconvertible $ 10,200,000 Preferred shares, no-par value, $0.92, nonconvertible, noncumulative, outstanding during year, 520,000 shares 10,200,000 Common shares, no-par value: Outstanding 1 Jan., 34,200,000 shares $ 7,350,000 Sold and issued 1 April, 3,250,000 shares 1,420,000 Issued 50% stock dividend, 30 Sept., 18,725,000 share 1,510,000 10,280,000 Retained earnings 7,912,000 The company declared and paid preferred dividends of $22,000 during the year and had an effective tax rate of 20%. Required: 1. Compute basic EPS