On December 31, 2013, Belair Corporation had 100,000 shares of common stock outstanding and 30,000 shares...

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On December 31, 2013, Belair Corporation had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2014, Belair purchased 24,000 shares of common stock on the open market as treasury stock paying $20 per share. On June 30, 2014, Belair declared and issued a 2-for-1 stock split on common stock. Belair sold 6,000 treasury shares on September 30, 2014, for $15 per share. Net income for 2014 was $180,905. Required: Compute Belair's basic earnings per share for 2014. (15 points) On December 31, 2013, Belair Corporation had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2014, Belair purchased 24,000 shares of common stock on the open market as treasury stock paying $20 per share. On June 30, 2014, Belair declared and issued a 2-for-1 stock split on common stock. Belair sold 6,000 treasury shares on September 30, 2014, for $15 per share. Net income for 2014 was $180,905. Required: Compute Belair's basic earnings per share for 2014. (15 points)

Answer rating: 100% (QA)

Number of shares outstanding opening number of common stock 100000 Less treasury stock pu... View the full answer