WileyPlus
Ace Company had 200,000 shares of common stock outstanding on December 31, 2015. During the year 2016, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 2016, Ace Company reported net income of $249,690 after a casualty loss of $40,600 (net of tax).
What earnings per share data should be reported at the bottom of its income statement, assuming that the casualty loss is extraordinary? (Round answers to 2 decimal places, e.g. $2.55.)
Wiley Plus Exercise 16-18
Flagstad Inc. presented the following data.
| Net income |
$2,500,000 |
| Preferred stock: 50,000 shares outstanding, $100 par, 8% cumulative, not convertible |
5,000,000 |
| Common stock: Shares outstanding 1/1 |
750,000 |
| Issued for cash, 5/1 |
300,000 |
| Acquired treasury stock for cash, 8/1 |
150,000 |
| 2-for-1 stock split, 10/1 |
Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)