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Charles Austin of the control basic and diluted caring the information listed below. P16.6 (LOS) Groupwork (Computation of Basic and Diluted EPS) Charles Austin of

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Charles Austin of the control basic and diluted caring the information listed below. P16.6 (LOS) Groupwork (Computation of Basic and Diluted EPS) Charles Austin of ler's office of Thomas Corporation was given the assignment of determining the basic and per share values for the year ending December 31, 2020. Austin has compiled the information lies 1. The company is authorized to issue 8,000,000 $10 par value ordinary shares. As of Deo 2019. 2,000,000 shares had been issued and were outstanding. 2. The per share market prices of the ordinary shares on selected dates were as follows Price per Share July 1, 2019 $20.00 January 1, 2020 21.00 April 1. 2020 25.00 July 1, 2020 11.00 August 1, 2020 10.50 November 1, 2020 9.00 December 31, 2020 10.00 3. A total of 700,000 shares of an authorized 1.200,000 shares of convertible preference shares nice shares have been issued on July 1, 2019. Each share had a par value of $25 and a cumulative dividend of share. The shares are convertible into ordinary shares at the rate of one convertible preferences for one ordinary share. The rate of conversion is to be automatically adjusted for share splits dividends. Dividends are paid quarterly on September 30, December 31, March 31. and June 30 4. Thompson Corporation is subject to a 40% income tax rate. 5. The after-tax net income for the year ended December 31, 2020, was $11.550.000 The following specific activities took place during 2020. 1. January 1-A 5% ordinary share dividend was issued. The dividend had been declared on December 1, 2019. to all shareholders of record on December 29, 2019 2. April 1-A total of 400.000 shares of the S3 convertible preference shares were converted into ordinary shares. The company issued new ordinary shares and retired the preference share This was the only conversion of the preference shares during 2020. 3. July 1-A2-for-1 split of the ordinary shares became effective on this date. The board of direct had authorized the split on June 1. 4. August 1-A total of 300,000 ordinary shares were issued to acquire a factory building 5. November 1-A total of 24,000 ordinary shares were purchased on the open market at po These shares were to be held as treasury shares and were still in the treasury as of December 6. Ordinary share cash dividends Cash dividends to ordinary shareholders were declarou follows. April 1550.30 per share. October 1550.20 per share. 7. Preference share cash dividends Cash dividends to preference shareholders were paid as scheduled olders were declared and les per share for the year ended Instructions a. Determine the number of shares used to compute basic earnings per share December 31, 2020, b. Determine the number of shares used to compute diluted earnings per December 31, 2020 c. Compute the numerator in the basic carnings per share calculation for the ber 31, 2020 es per share for the year ended for the year ended Decor

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