Question 2

The Common Stock account for Baltimore Corporation on January 1, 2020 was $55,000. On July 1, 2020 Baltimore issued an additional 10,000 shares of common stock. The Common Stock is $5 par. There was neither Preferred Stock nor any Treasury Stock. Paid in Capital Excess to par Common Stock was $20,000 on January 1 and $40,000 on July 2 and net income was $110,000. Use this information to determine for December 31, 2020 the amount of Earnings per Share (rounded to the nearest cent).