London Corporation had 50,000 common shares outstanding and 10,000 shares of $5, cumulative, preferred shares outstanding on January 1, 2020. On March 31, 2020, London Corporation sold 10,000 common shares for $25 per share. On June 30, 2020, London Corporation sold 5,000 common shares for $26 per share. London Corporation reacquired 2,000 of its common shares for $27 per share on October 1, 2020. London Corporation reported net income for the year ended December 31, 2020, of $200,000.

a) Calculate the weighted-average number of shares outstanding for 2020.
b) Calculate earnings per share for London Corporation.

Answer rating: 100% (QA)

1 Weighetd average number of shares 59500 A Shares outstanding Jan 1 march 50000 31 April ... View the full answer