Question: At December 31 2010 Reid Company had 600 000 ordinary shares
At December 31, 2010, Reid Company had 600,000 ordinary shares issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 200,000 of which were issued on October 1, 2010. Net income for 2010 was $1,750,000, and dividends declared on preference shares were $400,000. Compute Reid’s earnings per ordinary share.
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