The following condensed financial statements for Hudson Corporation were prepared by the accounting department.

Hudson Corporation
Balance Sheet
December 31, 2011
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . $6,850,000
Liabilities:
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200,000
6% bonds, due December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Stockholders' equity:
Common stock, $10 par, 250,000 shares authorized, issued and outstanding .. . . . . . 2,500,000
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,850,000
Instructions:
Compute the basic EPS under each of the following independent assumptions (the company has a simple capital structure).
1. No change in the capital structure occurred in 2011.
2. On December 31, 2010, there were 160,000 shares outstanding. On May 1,
2011, 60,000 shares were sold at par, and on October 1, 2011, 30,000 shares were sold at par.
3. On December 31, 2010, there were 200,000 shares outstanding. On July 1,
2011, the company issued a 25% stockdividend.

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Hudson Corporation Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross profit on sales Expenses: $11,000,000 8,500,000 2,500,000 Selling expense $730,000 370,000 50,000 Interest expense Income from continuing operations before income taxes Income taxes Income from continuing operations Extraordinary loss, net of tax savings 1,150,000 $ 1,350,000 420,000 $ 930,000 (80,000) 850,000 Net income