Sugarland Industries reported a net income of $760,750 on December 31, 2021. At the beginning of the year, the company had 510,000 common shares outstanding. On April 1, the company sold 27,600 shares for cash. On August 31, the company issued 49,200 additional shares as part of a merger. Required: Compute Sugarland's net income that would produce a basic EPS of $2.05 per share for 2021.

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"