(Computation of Basic and Diluted EPS) Charles Austin of the controller's office of Thompson Corporation was provided the assignment of determining the basic and diluted earnings per share values for year ending 31st December, 2011. Austin has compiled the information given below.
1. The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of 31st December, 2010, 2,000,000 shares had been issued and were outstanding.
2. The per share market prices of common stock on selected dates were as given.
Price per Share
July 1, 2010 $20.00
January 1, 2011 21.00
April 1, 2011 25.00
July 1, 2011 11.00
August 1, 2011 10.50
November 1, 2011 9.00
December 31, 2011 10.00