What should be the basic earnings per share in 2021? AUBURN Corporation had 120,000 of ordinary shares issued and outstanding at January 1, 2021. OnJanuary 2 of the same year, the company issued 80,000 preference shares. During the year, thecorporation declared and paid #420,000 cash dividend on the ordinary shares and #240,000 on thepreference shares. Net income for the year was $1,500,000.

Earnings per share represent the earnings held in hands of each shareholder of the company. It is…

AUBURN Corporation had 120,000 of ordinary shares issued and January 2 of the same year, the company issued 80,000 prefe corporation declared and paid $420,000 cash dividend on the a preference shares. Net income for the year was $1,500,000.

AUBURN Corporation had 120,000 of ordinary shares issued and January 2 of the same year, the company issued 80,000 prefe corporation declared and paid $420,000 cash dividend on the a preference shares. Net income for the year was $1,500,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Question

What should be the basic earnings per share in 2021?

AUBURN Corporation had 120,000 of ordinary shares issued and outstanding at January 1, 2021. On
January 2 of the same year, the company issued 80,000 preference shares. During the year, the
corporation declared and paid #420,000 cash dividend on the ordinary shares and #240,000 on the
preference shares. Net income for the year was $1,500,000.

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