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Question - Gidget Inc.'s capital structure included 400,000 common shares outstanding and $1,000,000 of 3.5% cumulative preferred shares outstanding all of which were issued in 20X1. $300,000 of dividends were declared and paid on December 31, 20X5. Previously, dividends were last declared and paid on December 31, 20X2. Gidget reported comprehensive income of $1,957,000 ($2,000,000 net income - $43,000 loss in other comprehensive income = $1,957,000 comprehensive income) for 20X5. What is the income available to common shareholders that ZGS will use to calculate basic earnings per share (EPS) for 20X5?
a. $1,965,000
b. $1,852,000
c. $1,895,000
d. $1,922,000
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