Problems VI Earnings Per Share 10

On January 1, 2017, Vermont Maple Corp. had 2,750,000 shares of common stock issued and outstanding. During 2017, it had the following transactions that affected the common stock account.

Mar. 1 Issued 250,000 shares in exchange for land

Apr. 1 Acquired 300,000 shares of treasury stock

July 1 Issued a 20% stock dividend

Sept. 1 Reissued 360,000 shares of treasury stock

(NOTE: adjusted for 20% stock dividend)

Oct. 1 Issued a 2-for-1 stock split

Instructions

Determine the weighted average number of shares outstanding as of December 31, 2017.

Assume that Vermont Maple Corp. earned net income of $8,632,000 during 2017. In addition, it had 240,000 shares of 8%, $100 par value nonconvertible, cumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2015 or 2017. Compute earnings per share for 2017, using the weighted average number of shares determined in part (a).The avg. price of the company stock is $40 per share.

Assume the same facts as in part (b), except that the preferred stock was noncumulative. Compute earnings per share for 2017.

Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $600,000, net of $400,000 in income taxes. Compute earnings per share for 2017. SHOW ALL WORK