CALCULATING EPS

The Reserve Company had 606 million shares of $10 par common stock outstanding at January 1, 2013. The following activities affected common shares during the year:

2013

Feb. 27 Purchased 18 million shares of treasury stock at $30

per share.

Oct. 30 Sold the treasury shares purchased on February 27 for $35 per share.

Nov. 29 Issued 72 million new shares at $36 per share.

Dec. 31 Net income for 2010 is $1,200 million.

2014

Jan. 14 Declared and issued a 2 for 1 stock split.

Dec. 31 Net income for 2011 is $1,200 million.

Required:

a. Record the 2013 and 2014 stockholders equity transactions.

b. Determine the 2013 EPS.

c. Determine the 2014 EPS.

d. At what amount will the 2013 EPS be presented in the 2014 comparative financial statement?