Egg Corporations accounting year ends on December 31. You are given information pertaining to changes during the two most recent years, to its common shares outstanding, as follows:

20X7 20X6

Shares outstanding, 1 January 150,000 120,000

25% stock dividend, 1 July 20X6 30,000

2-for-1 stock split, 1 July 20X7 150,000

New shares issued, 1 October 20X7 50,000

Shares outstanding, 31 December 350,000 150,000

Income from Operations $375,000 $330,000

Required: You are now at December 31, 20X7.

1. For purposes of calculating EPS at the end of 20X7, with comparative statements being prepared on a two-year basis, determine the weighted-average number of shares outstanding for each year.

2. With comparative statements being prepared on a two-year basis, compute basic EPS for each year based on computations in requirement (1). There were no preferred shares or dilutive securities outstanding.