Huron Resources is a public oil field services company. Selected information follows:

Required:
1. Calculate basic EPS for 20X4 and 20X3.
2. Interpret the trend in basic EPS.
3. Repeat requirement 1, assuming that the shares issued in 20X4 were issued as a result of a stock dividend.

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Bonds payable, 7%, due 20X16 Preferred shares, $3 dividend, noncumulative, 100,000 shares outstanding Preferred shares, $2 dividend, cumulative, 50,000 shares outstanding. Redemption price $20 per share plus dividends in arrears, if any Common shares, 900,000 shares outstanding at the end of 20X4 after 300,000 shares were issued for cash on 31 October 20X4; no share transactions in 20X3 Dividends declared during the year Net earnings and comprehensive income 20X4 $ 6,000,000 $ 1,600,000 $ 2,100,000 $16,200,000 $ 540,000 $ 700,000 20X3 $ 6,000,000 $ 1,600,000 $ 2,100,000 $10,700,000 0 $ 400,000