Your answer is correct.

b. Assume that Sunland Corp. earned net income of $3,362,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a). (Round answer to 2 decimal places, e.g. $2.55.)

answer 1.90

c.

Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)

EARNINGS PER SHARE

Exercise 16-16 (Part Level Submission) On January 1, 2021, Sunland Corp. had 480,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 March 1 May 1 June 1 October 1 Issued 119,000 shares Issued a 10% stock dividend Acquired 97,000 shares of treasury stock Issued a 3-for-1 stock split Reissued 61,000 shares of treasury stock (a) Your answer is correct. Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted average number of shares outstanding 1765225 Click if you would like to Show Work for this question: Open Show Work