Question $1$

Olson Co$.$ had $300,000$ shares of common stock issued and outstanding at December $31,2012.$ No

common stock was issued during $2012.$ On January $1,2012,$ Olson issued $200,000$ shares of non$-$

convertible preferred stock. During $2012,$ Olson declared and paid $$75,000$ of cash dividends on the

common stock and $$60,000$ on the preferred stock. Net income for the year ended December $31,2012$

was $$330,000.$ What should be Olson's $2012$ basic earnings per common share?

$($Total: $10$ marks$)$