Cryystal Arts Ltd. had earnings of $240,000 for 2015. The company had 40,000 common shares outstanding during

Question:

Cryystal Arts Ltd. had earnings of $240,000 for 2015. The company had 40,000 common shares outstanding during the year. In addition, the company issued 3,000 preferred shares at $75 per share on January 3, 2015. The preferred share has a dividend of $5 per share. No other transactions in either common or preferred shares occurred during 2015.

Determine the basic earnings per share for Crystal Arts Ltd.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...