Balor Corp. has a 31 December year-end. The following information relates to 20X8, 20X7, and 20X6.

Net earnings for 20X8 is $645,100.

Required:
1. For purposes of calculating EPS at the end of each year, independently calculate the weighted average number of shares outstanding for each year.
2. For purposes of calculating EPS at the end of 20X8, when comparative statements are being prepared on a three-year basis, calculate the weighted average number of shares outstanding for each year.
3. Describe why the treatment in requirement 2 above is appropriate.
4. Calculate basic EPS for 20X8.
5. If Balor Corp. is a private company, is it required to disclose basic and diluted EPS? Provide a logical rationale for your answer.

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Shares outstanding, 1 January Shares sold, 1 July 20X6 15% stock dividend, 1 July 20X7 2-for-1 stock split, 1 July 20X8 Shares sold, 1 October 20X8 Shares sold, 1 December 20X8 20X8 212,750 212,750 50,000 10,000 20X7 185,000 27,750 - 20X6 135,000 50,000 I