A company had the following outstanding shares as of January 1, year 2:
Preferred stock,...
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Business, 11.02.2020 22:25 DavidYSD46481
A company had the following outstanding shares as of January 1, year 2:
Preferred stock, $60 par, 4%, cumulative
10,000 shares
Common stock, $3 par
50,000 shares
On April 1, year 2, the company sold 8,000 shares of previously unissued common stock. No dividends were in arrears on January 1, year 2, and no dividends were declared or paid during year 2. Net income for year 2 totaled $236,000. What amount is basic earnings per share for the year ended December 31, year 2?
a.$4.21
b.$3.66
c.$3.79
d.$4.07
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