Question

The Alford Group had 202,000 shares of common stock outstanding at January 1, 2011. The following activities affected common shares during the year. There are no potential common shares outstanding.

2011
Feb. 28 Purchased 6,000 shares of treasury stock.
Oct. 31Sold the treasury shares purchased on February 28.
Nov. 30 Issued 24,000 new shares.
Dec. 31 Net income for 2011 is $400,000.

2012
Jan. 15 Declared and issued a 2-for-1 stock split.
Dec. 31 Net income for 2012 is $400,000.

Required:
1. Determine the 2011 EPS.
2. Determine the 2012 EPS.
3. At what amount will the 2011 EPS be presented in the 2012 comparative financial statements?



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  • CreatedJuly 11, 2013
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