Salmon Limited reported profit of $465,325 for its November 30, 2014, year end. Cash dividends of $90,000 on the common shares and of $65,000 on the noncumulative preferred shares were declared and paid during the year. The following information is available regarding Salmon's common shares:
Dec. 1, 2013 The opening number of common shares was 60,000.
Feb. 28, 2014 Sold 10,000 common shares for $200,000 cash.
May 31, 2014 Reacquired 5,000 common shares for $90,000 cash.
Nov. 1, 2014 Issued 15,000 common shares in exchange for land with a fair value of $310,000.
Instructions
(a) Calculate the profit available for the common shareholders.
(b) Calculate the weighted average number of common shares for the year.
(c) Calculate earnings per share for the year.
(d) Calculate earnings per share if no dividends had been declared and paid during the year.