On January 1, 2019, Chang Ltd. had 480,000 ordinary shares outstanding. During 2019, it had the following transactions that affected the ordinary share account.
February 1.........................Issued 120,000 shares
March 1............................Issued a 20% share dividend
May 1..............................Acquired 100,000 treasury shares
June 1..............................Issued a 3-for-1 share split
October 1.........................Reissued 60,000 treasury shares
Instructions
a. Determine the weighted-average number of shares outstanding as of December 31, 2019.
b. Assume that Chang Ltd. earned net income of ¥3,256,000,000 during 2019. In addition, it had 100,000 shares of 9%, ¥100 par, non-convertible, non-cumulative preference shares outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preference dividend in 2019. Compute earnings per share for 2019, using the weighted-average ordinary shares determined in part E16.17a..
c. Assume the same facts as in part E16.17b., except that the preference shares were cumulative. Compute earnings per share for 2019.
d. Assume the same facts as in part E16.17b., except that net income included a loss from discontinued operations of ¥432,000,000. The loss from discontinued operations is net of applicable income taxes. Compute earnings per share for 2019.