1.) Situation: Monsanto Corporation was incorporated in 2014. During 2014, the company issued 100,000 shares of $1 par value common stock for $27 per share. During 2015, the company had the following transactions. Note: Nothing is required by the student for this section.

Date	Transaction
1/1/15	Issued 10,000 shares of $100 par value cumulative preferred stock at par. The preferred stock was convertible into 5 shares of common stock and had a dividend rate of 6%.
3/1/15	Issued 3,000 shares of common stock for legal services performed. The stock was actively traded on a major exchange and had a fair value on 3/1/15 at $42 per share.
7/1/15	Issued 40,000 shares of common stock for $42 per share.
10/1/15	Repurchased 16,000 shares of treasury stock for $34 per share using the cost method to account for the acquisition.
12/1/15	Sold 6,000 shares of treasury stock for $29 per share.
12/30/15	Declared and paid a dividend of $0.20 per common share and a 6% dividend on the preferred shares.

During 2014, Monsanto Corporation had net income of $228,000 and paid dividends of $28,000. During 2015, Monsanto had net income of $600,000.

2.) Calculation of Basic Earnings per Share: Calculate basic earnings per share. Show the components of your solution and share weighting in the table below.

Numerator (in $$)	$
Denominator (in shares using the below table)
Basic Earnings Per Share	$

Date	# Shares	Time Outstanding (weighting)	Weighted Average Common Shares
1/1/15
3/1/15
7/1/15
10/1/15
12/1/15
	Total Shares

3.) Calculation of Diluted Earnings per Share: Calculate diluted earnings per share. Show the components of your solution in the table below.

Numerator (in $$)	$
Denominator (in shares)
Diluted Earnings Per Share	$

Using number 1, please show how you can calculate retained earnings and PIC-Treasury stock. thanks