At January 1, 2025, Langley Companys outstanding shares included the following. 280,000 shares of $50 par value,

Question:

At January 1, 2025, Langley Company’s outstanding shares included the following.

280,000 shares of $50 par value, 7% cumulative preferred stock

900,000 shares of $1 par value common stock


Net income for 2025 was $2,530,000. No cash dividends were declared or paid during 2025. On February 15, 2026, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2025.


On April 1, 2025, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2025, 110,000 shares of common stock were purchased for $20 per share and held as treasury stock.


Instructions

Compute earnings per share for 2025. Assume that financial statements for 2025 were issued in March 2026.

Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

Question Posted: