On January 1, 2018 Basic Corporation had 600,000 common shares outstanding and 25,000 $.50 cumulative convertible...

 

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On January 1, 2018 Basic Corporation had 600,000 common shares outstanding and 25,000 $.50 cumulative convertible preferred shares outstanding. Dividends are in arrears for three years. On February 1, 2018 the company issued 380,000 common shares. On March 1, 2018 the company issued a 2 for 1 stock split. On June 1, 2018, the company repurchased and retired 120,000 common shares 2018 Net income and comprehensive income was $2,700,000. Required: Calculate Basic EPS (show all calculations) and present as required for the Statement of Comprehensive income. On January 1, 2018 Basic Corporation had 600,000 common shares outstanding and 25,000 $.50 cumulative convertible preferred shares outstanding. Dividends are in arrears for three years. On February 1, 2018 the company issued 380,000 common shares. On March 1, 2018 the company issued a 2 for 1 stock split. On June 1, 2018, the company repurchased and retired 120,000 common shares 2018 Net income and comprehensive income was $2,700,000. Required: Calculate Basic EPS (show all calculations) and present as required for the Statement of Comprehensive income.

Answer rating: 100% (QA)

To calculate Basic EPS we need to determine the weighted average number of common shares outstanding ... View the full answer