Exercise 19-13 EPS; treasury stock; new shares; stock dividends; two years [LO19-5, 19-6]

The Alford Group had 320,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding.

2018
Feb.		28		Purchased 24,000 shares of treasury stock.
Oct.		31		Sold the treasury shares purchased on February 28.
Nov.		30		Issued 96,000 new shares.
Dec.		31		Net income for 2018 is $780,000.
2019
Jan.		15		Declared and issued a 2-for-1 stock split.
Dec.		31		Net income for 2019 is $780,000.

Required:

1. Determine the 2018 EPS. 2. Determine the 2019 EPS. 3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?

Item 8

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Item 8

Item 8 10 points

Exercise 19-13 EPS; treasury stock; new shares; stock dividends; two years [LO19-5, 19-6]

The Alford Group had 320,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding.

2018
Feb.		28		Purchased 24,000 shares of treasury stock.
Oct.		31		Sold the treasury shares purchased on February 28.
Nov.		30		Issued 96,000 new shares.
Dec.		31		Net income for 2018 is $780,000.
2019
Jan.		15		Declared and issued a 2-for-1 stock split.
Dec.		31		Net income for 2019 is $780,000.

Required:

1. Determine the 2018 EPS. 2. Determine the 2019 EPS. 3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?