Dazzle Corporation has provided the following information related to the current year ended December 31:Net earnings after tax: $1,685,000Common share information:January 1: 180,000 common shares outstandingMarch 1: 30,000 common shares issuedJuly 1: 57,000 common shares repurchased and cancelledOctober 1: A 2-for-1 stock split was declaredDecember 1: A 15% stock dividend was declaredPreferred share information:43,000 non-cumulative, non-participating preferred shares with a dividend of $1.50 per shareIn the current year, dividends of $50,000 were declared on the preferred shares.Required:Calculate basic EPS for Dazzle Corporation. Round to the nearest two decimals (i.e. $1.85)

Earning per share represents the net earnings held in hands of the outstanding shares of the…

Answered: Dazzle Corporation has provided the…

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 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...

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Dazzle Corporation has provided the following information related to the current year ended December 31:

Net earnings after tax: $1,685,000
Common share information:
- January 1: 180,000 common shares outstanding
- March 1: 30,000 common shares issued
- July 1: 57,000 common shares repurchased and cancelled
- October 1: A 2-for-1 stock split was declared
- December 1: A 15% stock dividend was declared
Preferred share information:
- 43,000 non-cumulative, non-participating preferred shares with a dividend of $1.50 per share

In the current year, dividends of $50,000 were declared on the preferred shares.

Required:

Calculate basic EPS for Dazzle Corporation. Round to the nearest two decimals (i.e. $1.85)

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