Instructions

(a) Calculate the income available for the common shareholders.

(b) Calculate the weighted average number of common shares for the year.

(c) Calculate the basic earnings per share for the year.

Marx Corporation started the year ended November 30, 2018, with 190,000 common shares and no preferred shares issued. The following changes in share capital occurred during the year: 28 Feb. Sept. Nov. 4 1 Issued 45,720 common shares for $808,000. Issued 64,800 $1 cumulative preferred shares for $1,620,000. Issued 19,800 common shares in exchange for land. The shares were trading for $21 on this date and the fair value of the land was $399,800. Reported net income of $976,300. Declared the quarterly cash dividend to the preferred shareholders of record on December 14, payable on December 31. 30 30