Question
Question 5: On January 1, 2021, Allergen Delivery Company had 100,000 shares of common stock outstanding. The net income for the year was $297,750. a.)
Question 5: On January 1, 2021, Allergen Delivery Company had 100,000 shares of common stock outstanding. The net income for the year was $297,750.
a.) Determine the basic earnings per share for the year ended December 31, 2021.
Show a labeled calculation for the denominator before calculating EPS.
b.) Assume the same facts as above, but in addition, the company purchased 24,000 shares on the open market on March 1, 2021, as treasury stock for $47 per share. On June 1, the company declared and issued a 2-for1 stock split on outstanding common stock. Determine the basic earnings per share for the year ended December 31, 2021.
Show a labeled calculation for the denominator before calculating EPS.
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International Accounting
Authors: Timothy Doupnik, Hector Perera
3rd Edition
978-0078110955, 0078110955
