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Harris Pilton Inc. has 5,000 shares outstanding on January 1. The company issued 2,000 new shares on May 1, repurchased 3,000 shares on August 1,

Harris Pilton Inc. has 5,000 shares outstanding on January 1. The company issued 2,000 new shares on May 1, repurchased 3,000 shares on August 1, and issued a 30% stock dividend on July 1. On December 1, the company issued 1,000 new shares. Net income is $50,000 and the firm has 500 shares of 5%, nonconvertible, noncumulative preferred stock in issue. No dividends were declared for the period.

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Compute basic earnings per share for the period.

Computations:

Basic EPS:

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