Calculate the Earnings per common share as at 31^st December 2018 from the following information.

1. Net income before any dividend for year ended 31^st December 2019 $75,000
2. Number of Common shares at 1^st January 2019 20,000
3. Number of Preference shares at 1^st January 2019 35,000
4. Number of Common shares at 31^st December 2019 30,000
5. Number of Preference shares at 31^st December 2019 48,000
6. Preferred share dividends paid for year 2019 $25,000
7. Annual General Meeting will be held at Canada Place Convention Center
8. Price Waterhouse was appointed the auditors in the AGM
9. AGM was held at Pacific centre in downtown Vancouver
10. Five directors were appointed in the AGM and two directors retired

Allocation of marks

Formula of EPS (4 Marks)

Calculations (5 marks)

Final Answer (1 mark