Q4. Bob the Builder was organized on January 1, Year 7, with 400,000 common shares authorized. During Year 7, the company had the following share transactions:

January 1 Issued 150,000 shares at $20 per share

April 1 Issued 50,000 shares at $25 per share

July 1 Issued 50,000 shares at $26 per share

October 1 Purchased 20,000 shares at $10 per share and cancelled them

Net income for Year 7 was $1,000,000. On January 31, Year 8, there was a two-for-one stock split and the financial statements for Year 7 were released on February 24, Year 8.

(1) What is the total $ amount of common shares to be reported at the statement of financial position at December 31, Year 7? [7 marks]

(2) What is the total $ amount of contributed surplus to be reported at the statement of financial position at December 31, Year 7? [7 marks]

(3) What is basic EPS to be reported at the income statement for the year ended December 31, Year 7? Please calculate EPS to the nearest cent (e.g., $7.77). [7 marks]