A. Murphy Co. had 60,000 common shares outstanding on January 1, 2017. The company sold an additional 4,500 shares on March 1, issued a 3-for-1 stock split on September 1, and reacquired 3,600 shares on December 1. The company also declared but has not paid, a dividend on its 10,000 shares of 5%, $10 par, noncumulative preferred stock. Murphy had a net income of $163,100. This consists of income from continuing operations of $195,000, and a loss from discontinued operations (net of taxes) of $31,900.

Instructions -

1.) Prepare a schedule to determine the weighted average of common stock outstanding for Murphy Company.

2.) Compute Murphy Co.'s basic earnings per share for 2017 and show 2017 income statement disclosure of basic earnings per share. You must show supporting computations.

*in U.S. dollar