Reporting Earnings Per Share In 2000, Tallen Company reported earnings per share of $3.00. In 2001, the company reports net income of $400,000. Tallen had 100,000 common shares outstanding during 2000 and for much of 2001. However, toward the end of 2001, its common stock split 2 for 1.

a. What amount will Tallen report in its 2001 annual report as earnings per share for 2000 and 2001?

b. How does the treatment of stock splits differ from that of stock dividends in computing earnings per share?

c. Where in the annual report are earnings per share figures reported?